A(n) Is a Contract Between a Promisee and a Promisor

question 36

Multiple Choice

A(n) is a contract between a promisee and a promisor by which the promisee agrees to accept and the
Promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

• A)accord
• B)mutual rescission
• C)material alteration
• D)novation

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Definitions:

Inelastic Demand Curve

A graphical representation of a situation where a change in price leads to a relatively small change in the quantity demanded.

Marginal Revenue

The change in a firm’s total revenue that results from the production and sale of one additional unit of output.

Cost Conditions

The factors that determine the expenses involved in production, including material, labor, and overhead costs.

Profit-Maximizing

The process or strategy aimed at achieving the highest possible profit from a business operation, by adjusting to optimal production levels and pricing strategies.