Johnson Entered into a Contract to Sell His Computer to Madison

question 16

Multiple Choice

Johnson entered into a contract to sell his computer to Madison for $950. Johnson then changed his mind and refused to deliver the computer to Madison as agreed. Johnson's failure to deliver the computer is considered to be

• A) an acceptance.
• B) a breach of contract.
• C) a quasi agreement.
• D) a performed contract.

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Definitions:

Marginal Revenue

The increase in revenue resulting from the sale of one additional unit of product.

Demand Schedule

A table that shows the quantity of a good or service demanded at different prices.

Natural Monopolist

A single firm that can supply a good or service to an entire market at a lower cost than could two or more firms, leading to a natural monopoly situation.

LRAC Curve

The Long-Run Average Cost curve, showing the lowest average cost at which a firm can produce any given level of output in the long run when all inputs are variable.