Question 1 discuss the economic trade-offs associated with, Ask an Expert

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Question 1. Discuss the economic trade-offs associated with obtaining inputs through spot exchange, contract, or vertical integration.

Question 2. Identify four types of specialized investments, and explain how each can lead to costly bargaining, underinvestment, and/ or a "hold- up problem."

Question 3. Explain the optimal manner of procuring different types of inputs.

Question 4. Describe the principal-agent problem as it relates to owners and managers.

Question 5. Discuss three forces that owners can use to discipline managers.

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