Question
SPACEXrequires specialized engines for its lunar aerial drone.The specifications and materials are not standard, and the potential costs and natural hazards that might affect construction
SPACEXrequires specialized engines for its lunar aerial drone.The specifications and materials are not standard, and the potential costs and natural hazards that might affect construction and performance are not well-known.Which of the following is true?
a.The manager should obtain the input through aspot exchange, since the firm might face the hold-up problem due to the specialized nature of the input.
b.The manager should obtain the input through acontract, which would decrease the problem of opportunism and would be relatively inexpensive since the defaults risks are not well-known.
c.The manager should obtain the input through avertical integration, since the firm might face the hold-up problem due to the specialized nature of the input.
d.The manager should obtain the input through aspot exchange, which would decrease the problem of opportunism and still allow the firm to specialize in production.
e.The manager should obtain the input through acontract, since this will increase the likelihood that the input supplier will use opportunism to lower the price of the input.
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