Answer to Question 1
Many aspects of specificity can raise the cost of redeployment and the risks of
opportunism:
1 . Task specificity: Specialized equipment is often necessary for low-cost production. One manufacturer's machine may only work for another make of car after costly modification.
2 . Locational specificity: Once built, facilities like electrical generators are immovable.
3 . Dedicated specificity: Equipment purchased for providing a specific service cannot be reused for other services.
4 . Human specificity: Workers can also have degrees of specificity. An employer's investment in company-specific skills can make a worker more productive, but that worker also has leverage during a salary review because if she leaves the employer incurs the cost of training a replacement.
Answer to Question 2
False
Question
Select the Code with the Highest Level of Specificity
Math question
economic question
Dark Brown Eye Color
No gene interaction in the production of feather color in budgerigar parakeets