Cisco Developed a Carburetor for Automobiles, Which He Called the "CiscoCarb

question 3

True/False

Cisco developed a carburetor for automobiles, which he called the "CiscoCarb." He advertised the carburetor in a national automobile magazine in a full-page advertisement under a caption that read: "Proven Performance-80 kilometres to a litre of gas in any car." The advertisement offered the carburetor for $100 on a 30-day, money back guarantee. If the advertisement was intended to read "8 kilometres to a litre" instead of the "80 kilometres to a litre," and Cisco immediately placed a correcting advertisement in the next issue of the magazine, he would not be in violation of the Competition Act.

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Definitions:

Gas Pump

A gas pump is a machine at a filling station that is used to transfer gasoline from a reservoir to a vehicle's fuel tank.

Reservation Price

The maximum or minimum price at which a consumer is willing to buy or sell a good or service.

Utility Function

A representation in economics that maps a set of goods and services into a numerical level of utility (satisfaction or happiness) that a consumer derives from those goods and services.

Good 1

Typically refers to a specific item or category of goods within an economic model, where multiple goods are being considered for analysis or comparison.