Wendy Was Fired from Her Job for Reasons That Violated

question 8

Multiple Choice

Wendy was fired from her job for reasons that violated her contract.She began a process of suing her employer for breach of contract and does not attempt to find a new job.Wendy made approximately $3000 a month and the case is decided 6 months after her termination.Which of the following is true?

• A)Wendy is entitled to $18 000 in damages.
• B)Wendy may be denied damages based on lost wages because she did not try to mitigate her loss.
• C)Wendy is entitled to damages from intangible losses.
• D)Wendy is entitled to her monthly wage until the date the trial begins.
• E)Wendy is entitled to the cost of suing her employer (the cost of the cure).

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Definitions:

Market Power

The ability of a firm to influence or control the price and output levels in a market.

Perfect Competition

A market structure characterized by a large number of small firms, a homogenous product, free entry and exit, and perfect information, leading to prices equaling marginal costs.

Monopolistic Competition

A market structure where many firms sell products that are similar but not identical, allowing for product differentiation.

Product Differentiation

The practice of setting a product or service apart from those in the marketplace to increase its attractiveness to a designated target market.