Ralph Is a Professional Football Player

question 33

Multiple Choice

Ralph is a professional football player.He signs a valid contract with the Jets.Later,he claims that he was also promised free use of the Jets' private jet,but this was not in the contract.What type of clause in his contract would prevent him from flying away with this claim?

• A) A complete agreement clause.
• B) A "no additional terms" clause.
• C) An integration clause.
• D) A severability clause.

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Average Variable Cost

The per unit cost of production excluding fixed costs, calculated by dividing the total variable costs by the quantity of output produced.

Short-Run Production

The period in which at least one input or factor of production is fixed, allowing firms to adjust only certain inputs to change output levels.

Average Total Cost

The total cost of production (fixed and variable costs) divided by the total quantity of output produced.