One Type of Bilateral Mistake Can Occur When a Word

question 46

True/False

One type of bilateral mistake can occur when a word or term in a contract is subject to more than one reasonable interpretation.

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Definitions:

Fixed Cost

Expenses that remain constant regardless of the firm's production volume.

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.