Comparative Negligence

question 51

Multiple Choice

Comparative negligence:

• A) has been rejected by most of the states.
• B) allows a comparison of negligence between plaintiff and defendant.
• C) only applies when the plaintiff has signed a release.
• D) is a bar to recovery under common law.

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Definitions:

Implicit Costs

The opportunity costs of using resources owned by the firm for its own use rather than selling those resources.

Explicit Costs

Direct, out-of-pocket payments for resources employed by firms for production, such as wages or rent.

Accounting Profit

The net income a company reports on the financial statements, calculated by subtracting total expenses from total revenues.

Economic Profit

The variance between what a business earns in total and what it spends, counting both actual expenses and notional costs.