Long-Term Contracts Are Not Efficient If

question 75

Multiple Choice

Long-term contracts are not efficient if

• A)a firm engages in relationship-specific exchange.
• B)specialized investments are unimportant.
• C)the contractual environment is simple.
• D)managers shirk.

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Definitions:

Somatostatin

Hormone, produced by the pancreas, stomach, and small intestine, that inhibits the effects of growth hormones; also suppresses activity of hormones such as insulin and glucagon.

Blood Glucose Levels

The concentration of glucose present in the blood, important for maintaining metabolic homeostasis and energy for the body.

Immune Response

The reaction of the body's immune system to foreign substances or pathogens, involving both specific and nonspecific defense mechanisms.

Thymus

Lymphoid organ involved in the development and functioning of the immune system; T lymphocytes mature in the thymus.