An Implied Warranty Is Created When a Seller Makes an Affirmation

question 62

True/False

An implied warranty is created when a seller makes an affirmation of fact or promise about the goods.

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Definitions:

Long Run

A period of time sufficient for all adjustments to be made in an economy or market, considering all possible changes in production.

Average Costs

The total cost of production divided by the number of units produced, used to determine the average expense per unit.

Marginal Costs

The increase or decrease in the total cost that results from producing one more or one less unit of a good or service.

Marginal Productivity

The additional output that results from using one more unit of a specific factor of production, holding all other factors constant.