Assume that Figure 4-16 shows the supply of new houses. An improvement in the technology for building houses will shift supply from

According to your text, who among the following have a comparative advantage in providing information that reduce transaction costs?

A) The consumer B) The bureaucrat C) The middleman D) The career politician

If a firm anticipates that it is at a risk of being held up, it is more likely to

a. forgo the transaction completely b. merge with its trading partner c. exchange "hostages" d. All the above