Consideration Is the Element of a Contract That

question 51

Multiple Choice

Consideration is the element of a contract that:

• A) allows it to be a gift
• B) prevents it from being a gift
• C) gives the offeror a better deal
• D) gives the offeree a better deal
• E) provides the terms of contract execution

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Definitions:

Economies Of Scale

Cost advantages that enterprises obtain due to their scale of operation, leading to cost per unit of output decreasing with increasing scale.

ATC

ATC, or Average Total Cost, is the total cost divided by the number of goods produced, reflecting the average cost of production per unit.

Economic Profit

The earnings excess over the summation of a firm's clear and hidden financial outlays, showcasing its comprehensive income versus expenses.

Perfect Price Discrimination

Perfect price discrimination occurs when a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus as profit.