If a Seller Sells an Automobile to a Buyer and Then

question 10

True/False

If a seller sells an automobile to a buyer and then delivers the car with an outstanding lien on it that was unknown to the buyer at the time of the sale, there is a breach of the implied warranty of merchantability.

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Definitions:

Marginal Cost Curve

A graphical representation showing the change in the total cost of producing one additional unit of a product or service.

Average Variable Cost

The total variable costs divided by the quantity of output produced, representing the variable cost of producing each unit of output.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced, showing the average cost per unit.

Long Run

A period during which all factors of production and costs are variable, allowing for the adjustment of all inputs and the adoption of new technology.