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.