Strict Liability

question 46

Multiple Choice

Strict liability

• A) does not apply if there is proof the defendant took extreme precautions for the safety of others.
• B) does not apply if there is proof the plaintiff took no precautions for his or her own safety.
• C) applies only in manufactured products cases.
• D) applies in cases of ultrahazardous activity.

---

Definitions:

Implicit Costs

Expenses that do not involve a direct monetary payment but represent the opportunity cost of using resources owned by the company or individual.

Average Cost of Production

The total cost of production divided by the quantity of output produced, indicating the cost to produce each unit of output.

Total Profit

The net profit a company earns, calculated by deducting all costs from its total income.

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in maintaining the operation.