A Third-Party Beneficiary Is a Party Who Is Not Part

question 527

True/False

A third-party beneficiary is a party who is not part of an original contract but who acquires rights under the contract.

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Definitions:

Willingness to Pay

The maximum amount that a consumer is prepared to spend on a good or service.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is unattainable.

Single Price Monopolist

A monopolist who charges all consumers the same price for its product, irrespective of the quantity purchased.