A Major Advantage of Long-Term Contracts Over Short-Term Contracts Is

question 16

Multiple Choice

A major advantage of long-term contracts over short-term contracts is that they increase the incentives of the contracting parties to:

• A)practice holdup actions.
• B)practice arbitrage.
• C)undertake spot market transactions.
• D)make firm-specific investment.

---

Definitions:

Night's Sleep

The period of rest, typically at night, during which an individual refrains from wakefulness and engages in a natural state of unconsciousness.

REM Sleep

A phase of sleep characterized by rapid eye movements, low muscle tone, and vivid dreams, playing a critical role in learning and memory.

Dreaming

Thoughts, visuals, and emotional sensations that occur in one's mind during the state of sleep.

Stage 1 Sleep

The initial phase of the sleep cycle, characterized by light sleep, where one can be easily awakened and may experience sudden muscle contractions.