Clauses Which Determine the Sum Payable by the Contract Breaker

question 6

True/False

Clauses which determine the sum payable by the contract breaker in the event of breach are only enforceable if the sum stipulated is a genuine pre-estimate of the loss likely to be caused by the breach.

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Definitions:

ATC

Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Short Run

A period in which at least one input is fixed and firms cannot adjust all inputs to production.

ATC

Average Total Cost; the total cost of production divided by the quantity of output produced.

Price Charged

The amount of money required for the purchase of a good or service, set by the seller.