Which of the Following Mistakes Is Most Likely to Prevent

question 41

Multiple Choice

Which of the following mistakes is most likely to prevent the creation of a contract?

• A)As a result of a mistake regarding the future value of a technology company, a stock broker buys stock in that company.
• B)In January, a person agrees to pay $10 000 for the right to occupy a lakeside cottage during July and August.When both parties go to the lake on July 1, however, they discover that the cottage burned to the ground several weeks earlier.
• C)A grocery supplier fills an order for 5000 cans of beans but mistakenly sends only 500 cans.
• D)A bean wholesaler ships 5000 cans of golden wax beans to a customer who thought that he was ordering 5000 cans of corn.
• E)A person agrees to a standard form contract on the internet by clicking the mouse on the "I Agree" icon.

---

Definitions:

LRAC Curve

Stands for Long-Run Average Cost curve, which shows the lowest average cost at which a firm can produce any given level of output in the long term when all inputs are variable.

Decreasing-Cost Industry

An industry in which production costs decrease as the industry grows and output increases, often due to economies of scale.

LRAC Curve

The Long-Run Average Cost curve, showing the lowest possible cost of producing different levels of output when all inputs are variable.

Increasing-Cost Industry

An industry where production costs increase as output grows, often due to resource limitations or regulatory constraints.