Beth Is Leaving for Vacation for 2 Weeks and Is

question 17

Multiple Choice

Beth is leaving for vacation for 2 weeks and is concerned about her antique Thunderbird because she does not have a garage.She reaches an agreement with a neighbor,Billy,for Billy to store her car in his garage for the 2 weeks for $100.While she is gone,Billy drives the car approximately 100 miles.In this circumstance:

• A) So long as the total amount driven is a reasonable amount for 2 weeks,Billy has done nothing wrong.
• B) Because all bailments grant the right to use the bailed property,Billy has done nothing wrong.
• C) Billy had no right to use the car because a bailment cannot simultaneously grant a right of use.
• D) Billy had no right to use the car unless the bailment agreement provided one.
• E) Billy had the right to use the car so long as there was no wear and tear on it as a result.

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Definitions:

Collusion

An agreement between firms to limit competition, set prices, or divide markets, which usually distorts the outcomes of a free market.

Marginal Revenue

Marginal Revenue is the additional income acquired from selling one more unit of a product or service, crucial for determining optimal production levels.

Cost Function

A mathematical relationship that describes how production costs change with variations in output level.

Reaction Curves

Graphs showing how one firm’s optimal output decision responds to quantities of output by competing firms in a market.