Tile & Grout (T&G)contracts to Resurface the Insides of the Pools

question 49

Multiple Choice

Tile & Grout (T&G) contracts to resurface the insides of the pools at WaterWorld Park. T&G knows that without the resurfacing,WaterWorld will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages,WaterWorld can recover

• A)the cost of new pools.
• B)the difference between T&G's price and the eventual cost of resurfacing.
• C)the loss of profit from the delayed opening.
• D)nothing.

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Definitions:

Long Run

A time period in economics during which all inputs or factors of production can be varied, and no costs are fixed.

Expenditures

Money spent on goods, services, or other expenses by individuals, businesses, or governments.

Long Run Cost Curve

A graphical representation that shows the minimum cost at which any given level of output can be produced in the long term, once all inputs are variable.

Expansion Path

A line that shows the combination of inputs that a firm will use to maximize output for any given level of total cost.