Mark Walton Was Involved in a Car Accident in Which

question 35

Multiple Choice

Mark Walton was involved in a car accident in which the airbag of his car failed to deploy.He sued the car manufacturer for installing faulty airbags.But in the course of the case being heard in court, the car company and Mark decided settle the lawsuit out of court.What important function of the law was served in this case?

• A)promoting social justice
• B)maximizing individual freedom
• C)providing a basis for compromise
• D)maintaining the status quo

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Definitions:

Marginal Revenue

The increase in revenue that results from selling one additional unit of a product or service.

Horizontal Axis

The “left-right” or “west-east” measurement line on a graph or grid.

Economic Profit

The discrepancy between a company's complete income and its aggregate expenditures, covering both out-of-pocket and assumed costs.

Purely Competitive

A market structure characterized by a large number of sellers offering identical products, with easy market entry and exit and no single seller controlling market prices.