Johnson Has a Contract to Supply Peters with Widgets Over

question 14

Short Answer

Johnson has a contract to supply Peters with widgets over a three-year period.Halfway through the contract, Johnson decides to change the focus of his company and he will no longer sell widgets.He wants to transfer his contract for widgets to Bennett.Can he do that? If so, how? If not, why not?

---

Definitions:

Marginal Product

Marginal Product is the additional output produced as a result of utilizing one more unit of a particular input, holding all other inputs constant.

Stock Dividends

A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash.

Factors of Production

The inputs used in the production of goods or services; traditionally includes land, labor, capital, and entrepreneurship.

Marginal Product

The additional output a firm gains from employing one more unit of input, holding the levels of all other inputs constant.