What Does the Mailbox Rule Provide

question 26

Multiple Choice

What does the mailbox rule provide?

• A) that an acceptance must be mailed in order to be effective
• B) that most contracting must be conducted through the mail
• C) that an acceptance is not effective until it reaches the mailbox of the offeror
• D) that a properly dispatched acceptance is effective when sent, even if it does not reach its destination
• E) that all communications in connection with contract formation are effective when sent, so long as they are properly dispatched

---

Definitions:

Average Variable Cost Curve

A curve showing the average variable costs (costs that change with output) per unit of output over different levels of production.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs dilute with increased output.

Average Total Costs

The cost per unit produced calculated by dividing the total cost of production by the quantity of output.

Average Fixed Cost

The fixed cost per unit of output, calculated by dividing total fixed costs by the quantity of output produced.