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In: Economics

Explain how each of the following affects the optimal method of acquiring an input. In each...

Explain how each of the following affects the optimal method of acquiring an input. In each case, be specific about the method of acquisition and provide explanations.

a) A complex contracting environment

b) A specialized investment

c) Opportunism

d) Bargaining costs

e) The costs of bureaucracy

f) Gains from specialization

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