Which of the Following Statements Is True of Mitigation of Damages

question 32

Multiple Choice

Which of the following statements is true of mitigation of damages?

• A) The breaching party must make efforts to mitigate damages resulting from the breach of contract.
• B) If an employer breaches an employment contract, he or she owes a duty to mitigate damages by trying to find substitute employment for the employee.
• C) The extent of mitigation of damages required is common to all kinds of contracts.
• D) If an employer breaches a contract, the employee is only required to accept comparable employment.

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Definitions:

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.

Marginal Revenue Curve

A graphical representation that shows the change in total revenue for every unit increase in the quantity of output sold.

Demand Curve

A graphical representation showing the relation between the price of a good and the quantity demanded by consumers.

Profit Maximizing

is a strategy where a firm decides on the quantity of production and price to maximize its profit.