Waldo Washes Windows with Worldwide Window Washers

question 54

Multiple Choice

Waldo washes windows with Worldwide Window Washers.Waldo has just begun the second year of a 3-year contract that pays him $30,000 per year.Even though Waldo has performed his job perfectly,he was suddenly told that his contract was being terminated.Waldo was offered a couple of other jobs shortly after this contract was terminated.The first was as a custodian in a city 200 miles away paying $24,000 a year.The second was as a cook in a local fast food restaurant paying $22,000 a year.Waldo took neither job.In connection with his duty to mitigate,which of the following is true?

• A) Waldo would not be obligated to accept the custodian job.
• B) Waldo would not be obligated to accept the cook job.
• C) Waldo would be obligated to accept neither job.
• D) Waldo would be obligated to accept one of the jobs,but the choice of which one was up to Waldo.
• E) Waldo is not obligated to accept any job of any kind for the duration of the contract that was breached.

---

Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity of it that producers are willing and able to supply at different prices.

Price Of Brownies

The amount of money required to purchase a specific quantity of brownies in a given market.

Producer Surplus

represents the difference between what producers are willing to accept for a good or service and the actual price they receive, measuring their benefit.

Supply Curve

A graphical representation that shows the relationship between the price of a good or service and the quantity supplied by producers.