Day 1: Mike Sends Tina a Letter Offer to Sell

question 47

Multiple Choice

Day 1: Mike sends Tina a letter offer to sell his fish tank to her for $125.
Day 2: Tina faxes Mike an acceptance.
Day 2: Mike receives Tina's fax.
Day 3: Mike calls Tina to revoke his offer.
Mike and Tina:

• A)do not have a contract since Tina used the wrong means of acceptance.
• B)do not have a contract because Mike revoked his offer before Tina accepted properly.
• C)have a contract as of the receipt of the fax.
• D)have a contract as of when the fax was sent.

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Definitions:

Identical Cost Curves

Cost curves that are exactly the same in shape and form, reflecting the same costs of production for different firms.

Industry Price

The general price level for goods and services within a specific industry, influenced by market conditions, production costs, and demand.

Long-run Equilibrium

A state in an economy or market where all factors of production and economic agents are fully adjusted to the conditions and thus remain stable over time.

Economic Profit

The financial contrast between aggregate income and total spending, factoring in both specific and vague costs.