Watson, a Director of a Telecom Company in Florida, Entered

question 5

Multiple Choice

Watson, a Director of a telecom company in Florida, entered into a written contract with Carter Telecon. The contract outlined the services his company would provide in exchange for a fixed monthly rate. This is an example of:

• A)an implied contract.
• B)an express contract.
• C)a specification of contract.
• D)a breach of contract.

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Definitions:

Economic Profit

The total revenue of a firm minus its explicit and implicit costs, representing the financial gain exceeding the opportunity cost.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a homogenous product.

Cost Data

Details about the costs associated with creating a product or service, such as the expenses for materials, workforce, and indirect costs.

Purely Competitive Producer

A producer in a market structure characterized by many small firms, homogeneous products, and free entry and exit, leading to zero economic profit in the long run.