Concepts of asset specificity

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A chain of 8 coffee shops "Super Coffee" operates in the metropolitan area. It has a thriving business selling specialty coffee drinks. Carlson Coffee managers have commissioned a study that concluded that many customers would like to eat a light meal when they come by for a latte. Super Coffee stores don't have space for kitchens to prepare food. Super Coffee is considering two options: (a) buy prepared light meals from vendors, shipped daily, and (b) establish a kitchen that will provide the coffee shops with pastries food items, delivered daily.

Using the concepts of asset specificity, asymmetric information, contract enforceability and economies of scale. what is the recommendation?

Advantages for a and b

Disadvantages for a and b

Reference no: EM133164415

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