In TCE, asset specificity means:
A) the degree to which an asset is specific to use or user
B) the degree to which an asset can be traded
C) the degree to which an asset can be valued
D) none of these

Question

Quizplus · Accepted Answer

Asset specificity refers to the degree to which an asset is specific to a particular use or user. For example, a machine that is custom-designed for a specific production process would have high asset specificity because it cannot easily be used for other purposes.

In TCE, Asset Specificity Means