If a Firm or a Nation Desires to Maximize Its

question 5

Multiple Choice

If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who

• A) have the highest opportunity cost.
• B) have a comparative advantage in the productive activity.
• C) can complete the productive activity most rapidly.
• D) least enjoy performing the productive activity.

Distinguish between unilateral and bilateral contracts.

Analyze the effect of communication modes on the validity of contract acceptance and revocation.

Understand the implications of breach of contract and the remedies available.

Assess the impact of consumer protection laws on unsolicited goods and false advertising claims.

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Definitions:

Years

A unit of time equal to 365 days (366 in a leap year), commonly used as a basic measure for accounting periods, product warranties, and investment horizons.

Discount Rate

In the context of discounted cash flow analysis, it's the rate used to determine the present market value of anticipated cash flows.

Payments

The transfer of money, or its equivalent, from one party to another as a fulfillment of an obligation or for the purchase of goods or services.

Yearly

Relating to or happening every year; annual.