Will Makes an Offer to Ike, but Before Ike Can

question 64

Multiple Choice

Will makes an offer to Ike, but before Ike can accept, the state legislature passes a law that makes Will's offer illegal.The new statute:

• A) automatically terminates the offer.
• B) has no effect on the offer.
• C) acts as a condition on the offer.
• D) acts as a rejection of the offer by the offeree.

---

Definitions:

Economic Profit

The profit a company makes after accounting for both its explicit and implicit costs, differing from accounting profit by considering opportunity costs.

Marginal Revenue

The additional income earned from the sale of one more unit of a product or service.

Industry Standard

A set of criteria within an industry that acts as an agreed-upon norm or benchmark for products, services, and processes.

Economies of Scale

A concept in economics where increasing the scale of production leads to a decrease in the average cost of each unit produced.