You Innocently Have Made Some Misstatements That Others Are Relying

question 31

Multiple Choice

You innocently have made some misstatements that others are relying on. Legally speaking, you can change your situation from innocent misrepresentation into one of fraudulent or negligent misrepresentation by

• A) immediately try to set things right.
• B) filing a writ of claims with the court.
• C) doing nothing when you learn about the truth.
• D) letting the other party know you were in error.
• E) trying to mitigate the situation.

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Definitions:

Profit-Maximizing

The approach a company takes to determine the most profitable pricing and output combination.

Deadweight Loss

An inefficiency in the market that occurs when supply and demand are out of balance, resulting in lost economic opportunity.

Consumer Surplus

The distinction in the collective amount consumers are disposed and financially able to spend on a product or service, and the collective amount they actually spend.

Profit-Maximizes

A strategy or behavior exhibited by firms aiming to achieve the highest possible profits by adjusting their production levels, prices, and cost structures.