The Country of Lydania Has a Complex Network of Pipelines

Multiple Choice

The country of Lydania has a complex network of pipelines that transports natural gas for millions of people. These pipelines are specifically designed for the transportation of natural gas and have limited uses outside the natural gas industry because of inherent industry regulations. These pipelines exemplify a(n) _________.

A) sunk cost
B) transaction-specific asset
C) intangible asset
D) greenfield entry