Justin Buys a Computer from a Retailer and His Son

question 38

Multiple Choice

Justin buys a computer from a retailer and his son is injured when the glass on the monitor shatters while he is using it.He sues the wholesaler only and the jury determines that this was a manufacturing defect that existed when the computer left the factory and caused the son's injury.The jury determined that the wholesaler was only 5-percent responsible,the retailer 20-percent,and the manufacturer 75-percent.Justin can:

• A) recover the full amount of his damages from the wholesaler
• B) recover only 5 percent of his damages from the wholesaler
• C) recover 20 percent from the retailer,but none from the parties he did not deal with
• D) not recover because he (the son) was not the one who bought the computer

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Definitions:

Number of Firms

Refers to the total count of business entities participating in a particular market or industry.

Long-Run Equilibrium

a state in which all factors of production can be adjusted, and all firms in the market are making zero economic profits, reflecting a situation of perfect competition.

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, the cost of producing one more unit of a good.