Intoxicated but Fully Aware of the Consequences,Cory Agrees to a Two-Year

question 12

Multiple Choice

Intoxicated but fully aware of the consequences,Cory agrees to a two-year service contract with Signal Maintenance,Inc.,at more than the average market price. This contract is

• A)enforceable.
• B)notenforceable because contracting parties can change their minds.
• C)notenforceable because the contract clearly favors Signal.
• D)notenforceable because Cory was intoxicated when he agreed to it.

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Definitions:

Production Function

An equation or model showing the maximum output that can be produced with a given set of inputs, expressing the relationship between inputs and outputs in the production process.

Isoquant

A curve that represents all combinations of inputs that produce the same level of output in production theory.

Inputs

Factors or resources employed in producing goods, including time, manpower, and raw materials.

Lagrange Multipliers

A mathematical method used to find the maximum or minimum of a function subject to constraints.