Stan, an Air Conditioning and Heating Technician, Files Suit Against

question 47

Multiple Choice

Stan, an air conditioning and heating technician, files suit against Temp-Set Corporation, alleging that its thermostats are unreasonably dangerous due to the possibility of electrical shock while being installed. Temp-Set's best defense is most likely

• A)assumption of risk.
• B)knowledgeable user.
• C)commonly known danger.
• D)none of the choices.

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Definitions:

Perfect Competitor

An entity in a highly competitive market where firms sell homogeneous products, have no control over market price, and where there is free entry and exit of firms.

Elastic Demand Curve

Represents a situation where the quantity demanded of a good or service significantly changes in response to a change in price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Monopolistic Competitor

A market structure where many firms sell products that are similar but not identical, thereby having some control over their prices.