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27 August, 14:53

Suppose you hire an employee to operate a machine that only your company can use. Identify the type of specialized investment that this situation requires.

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  1. 27 August, 16:00
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    human capital

    Explanation:

    There are four types of specialized investments that need to be carried but are generally described as hidden costs of a business transaction:

    site specificity : when the buyer and seller must locate a facility close to each other. physical-asset specificity : when the equipment or machinery is designed to serve a specific buyer. dedicated assets : general investments required to engage in an exchange transaction with a specific buyer. human capital : workers must learn specific skills to perform certain tasks for a particular firm.
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