Bonnie and Eric are both successful musicians and entrepreneurs. They are considering a project to augment an existing electric guitar design so that in addition to the usual strings of the guitar, their new instrument will also have two bass strings that enable a single musician to combine bass and lead guitar sounds on a single guitar. In order for the project to go ahead, Bonnie must first construct 100 prototypes at cost of $100,000. Once the prototypes are constructed, Eric can then use his fame and connections in the music industry promote the new instrument and negotiate a contract with guitar manufacturers like Fender and Gibson. Eric expects that one of these companies will sign an exclusive contract to produce the guitar worth $1 million each to him and Bonnie. However if Eric does not like the prototypes, he reserves the right to walk away from their deal. Without Eric's connections, Bonnie can still approach guitar manufacturers and try to secure a deal independently. If this happens it is more likely that a lesser-known (smaller) manufacturer will agree to produce the guitar. As a result, the expected value going solo for Bonnie falls to $250,000. a. Is there a relationship-specific asset in this project? If so, how much is it worth? b. What is Bonnie's rent from this project? c. What is the quasi-rent? d. What should the new instrument be called?