Which of the Following Is True Regarding the Effect of Death

question 2

Multiple Choice

Which of the following is true regarding the effect of death and incapacity on an offer?

• A) Death or incapacitation of either party terminates an offer.
• B) Death of either party terminates an offer, and incapacity on the part of the offeror terminates an offer, but incapacity on the part of an offeree does not terminate an offer.
• C) Death of either party terminates an offer, and incapacity on the part of an offeree terminates an offer, but incapacity on the part of the offeror does not terminate an offer.
• D) Neither death nor incapacity on either the part of the offeror or offeree terminates an offer.

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Definitions:

Perfect Competitor

A theoretical market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can influence market price.

Marginal Product

The increase in output resulting from a one-unit increase in the amount of a single input, holding all other inputs constant.

Wage Rate

The fixed amount of compensation or payment made to an employee by an employer in return for work performed, typically expressed on an hourly, daily, or piecework basis.

Variable Inputs

Resources used in production that vary with the level of output, such as raw materials and labor hours.