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A. A music DJ who is a fan of 45-inch vinyl records prefers to...

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Accounting

A. A music DJ who is a fan of 45-inch vinyl records prefers to buy the records at swap meets so that she can inspect the records for scratches. The DJ is acquiring records through

Multiple Choice

  • the spot market.

  • a short-term contract.

  • a long-term contract.

  • vertical integration.

B Long-term contracts

Multiple Choice

  • increase transaction costs and increase opportunism.

  • increase transaction costs.

  • can reduce opportunistic behavior.

  • reduce incentives for specialized investments.

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