If Setup Costs Are High, the Manufacturer Can Produce the Item

question 3

True/False

If setup costs are high, the manufacturer can produce the item often, and the average cost per item is stable and equal to the running costs.

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Definitions:

Concealment

The active hiding of the truth about a material fact.

Material Fact

A fact that is significant or essential to the issue or matter at hand, especially in the context of contracts or litigation.

Mistake Of Fact

An error made regarding a fact that is material to a contract, which can affect the validity of the contract if the mistaken belief was a basis for its formation.

Peerless Case

The Peerless case, formally known as Raffles v Wichelhaus, is a leading English contract law case that established the doctrine of mutual mistake when both parties of a contract are mistaken about an essential term of the contract.