Soft Chair Company Contracts to Deliver One Hundred Chairs to Stuffy

question 50

Multiple Choice

Soft Chair Company contracts to deliver one hundred chairs to Stuffy Furnishings Store on May 1. Soft tells Stuffy on April 15 that delivery will be delayed until June 1. Stuffy

• A) may await performance, sue Soft, or suspend its own performance.
• B) must await Soft's performance for a commercially reasonable time.
• C) must immediately sue Soft for breach of contract.
• D) must give Soft thirty days to change its mind and correct the problem.

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Definitions:

Long-run Profit

The amount of financial gain achieved over a longer period, taking into account all fixed and variable costs.

Market Demand Curve

Curve relating the quantity of a good that all consumers in a market will buy to its price.

Demand Curve

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

Incumbent Firm

An established company that holds a dominant position in a particular market or industry.