You have just made a relationship-specific investment to manufacture and supply microprocessors for a company. Let P1 denote the price you expect to receive when you successfully sell the microprocessor to the company. Also let P2 (which is smaller than P1) denote the price you expect to receive when you would have to sell the microprocessors to jobbers or elsewhere. If the difference between P1 and P2 gets smaller, What can be inferred?
1) The price you expect to receive when you successfully sell the microprocessor to the company decreases
2) The price you expect to receive when you would have to sell the microprocessors to jobbers or elsewhere increases
3) The price you expect to receive when you successfully sell the microprocessor to the company increases
4) The price you expect to receive when you would have to sell the microprocessors to jobbers or elsewhere decreases
