Jerry Has Made an Offer to Contract with Cosmo

question 36

Multiple Choice

Jerry has made an offer to contract with Cosmo.If Cosmo returns to Kelowna from Brandon before August 31,he can live in Jerry's spare room for four months without paying rent.Cosmo proposes for an option on the offer until August 1,which Jerry accepts.In July,Jerry realizes his other friend,George,is willing to move in and pay twice what Cosmo will pay.Therefore,Jerry wants to revoke the offer.Which of the following is true?

• A)Jerry cannot revoke the offer until August 2.
• B)Jerry can revoke the offer because George has offered higher consideration.
• C)Jerry can only revoke the offer if he can prove Cosmo is insane.
• D)Jerry must wait until September 1,when the offer has lapsed.
• E)Jerry can only hope that Cosmo rejects the offer.

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Definitions:

Profit Maximization

The procedure through which a business identifies the pricing and production volume that yields the highest earnings.

Market Price

The price at which a good or service is offered in the marketplace.

Profit Maximization

A rephrased definition: The strategy or aim of a firm to achieve the highest profit possible, usually by adjusting outputs, prices, or production costs.

Market Price

The current price at which an asset or service can be bought or sold in the open market.