Specialized Investments and Contract Length MC MB Due to greater need for specialIzed investments MB Longer Contract Contract 0 Length Michael R Baye, Managerial Economics and Business Strategy, 3e. CThe McGraw-Hill Companies, Inc, 1999Michael R. Baye, Managerial Economics and Business Strategy, 3e. ©The McGraw-Hill Companies, Inc. , 1999 Specialized Investments and Contract Length MB0 MC L0 $ Contract Length 0 L1 MB1 Longer Contract Due to greater need for specialized investments