Which of the Following Is True with Regard to the Difference

Multiple Choice

Which of the following is true with regard to the difference in exchange costs between an item produced internally firm and an item purchased from an outside supplier through an arm's length market transaction as the level of asset specificity increases?

A) The cost difference is positive for both low and high levels of specificity
B) The cost difference is negative for both low and high levels of specificity
C) The cost difference is negative for low and positive for high levels of specificity
D) The cost difference is positive for low and negative for high levels of specificity
E) As asset specificity increases,the transaction costs of the market exchange decrease