A Form of Strict Liability Applies to All of the Following

question 27

Multiple Choice

A form of strict liability applies to all of the following situations except:

• A) a lawnmower sold in a defective condition that injures its owner.
• B) a fireworks factory that blows up and injures townspeople and their property.
• C) a medical procedure.
• D) a herd of goats that travel onto a neighbor's property,eating and trampling the neighbor's roses.

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Definitions:

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the true profitability of the business.

Long Run

A time frame in economics where all factors of production and costs are variable, allowing for complete adjustment to changes in the market or economic environment.

Profit-Maximizing

A strategy or point at which a business reaches the highest possible level of profit through the adjustment of sale prices, production costs, and output volume.

Level of Output

The total volume of goods or services produced by a firm, industry, or economy within a given period.