Question: Consider the following scenario: Company A contracts with Company B to supply widgets. At the time of signing the contract B pays $175 in advance

Consider the following scenario: Company A contracts with Company B to supply widgets. At

the time of signing the contract B pays $175 in advance for the widgets, which it plans to

sell in turn for $200. Company A calculates that it will cost $150 to produce the widgets. In

order to use the widgets, company B must modify the warehouse slightly to store the widgets.

For this purpose, company B makes a reliance investment of $10 prior to delivery. Just before

the transaction is completed, company C offers company A $250 for the widgets.

Given this background, show how the Coasean notion of efficient breach would work among

the three contracting parties.

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