Specific Assets

Multiple Choice

Specific assets

A) are investments that are part of a general economic relationship.
B) are investments that are dedicated to a particular short-term economic relationship.
C) are assets that create incentives for vertical integration because it is difficult to write and enforce long-term contracts.
D) are assets whose value is derived from locational advantages that are crucial to the production in a particular industry.
E) are assets that create incentives for horizontal integration because they make it easier to write and enforce contracts.