Assume That the Supply Curve Is Horizontal Because Marginal Cost

question 16

Multiple Choice

Assume that the supply curve is horizontal because marginal cost is constant at $10.John,Robert,and Jimmy each value one compact disc at $20 but only Jimmy and John value a second compact disc (Jimmy at $5 and John at $15) .It follows that the optimal number of compact discs sold in this market is

• A) two.
• B) three.
• C) four.
• D) five.

Grasp the concept of impracticability and impossibility in contract law.

Understand the doctrine of good faith and fair dealing in contractual relationships.

Analyze the responsibilities and rights associated with condition precedent and condition subsequent.

Recognize the legal remedies available for breach of contract including injunctions and damages.

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Definitions:

Efficiency Wage

A higher wage paid by employers to increase productivity by attracting better applicants, reducing turnover, and motivating employees.

Marginal Productivity

The additional output that is produced by adding one more unit of a factor of production, holding other factors constant.

Income Distribution

The way in which total income is divided among the population or different groups in an economy.

Labor Market

The supply and demand for labor, where employers seek to hire workers and workers look for employment.