Which of the following is a disadvantage acquiring inputs by using a contract? a Since a contract can specify input prices before making specialized investments, it reduces potential future opportunism. Ob. Contracts are only effective when the likelihood of all consequences that might affect the ability and costs of the fulfilling the contract are NOT well-determined for one or both parties. OC Contracts reduce the incentive for buyers and sellers to skimp on specialized investments. Contracts require legal fees and negotiation expenses to be paid up-front. d. O e. Contracts are only cost effective when the details of a transactions cannot be classified, quantified, and standardized.

Which of the following is a disadvantage acquiring inputs by using a contract? a Since a contract can specify input prices before making specialized investments, it reduces potential future opportunism. Ob. Contracts are only effective when the likelihood of all consequences that might affect the ability and costs of the fulfilling the contract are NOT well-determined for one or both parties. OC Contracts reduce the incentive for buyers and sellers to skimp on specialized investments. Contracts require legal fees and negotiation expenses to be paid up-front. d. O e. Contracts are only cost effective when the details of a transactions cannot be classified, quantified, and standardized.