Laramie Contracts to Provide Cattle-Herding Services to Miles for $1,400

question 48

Multiple Choice

Laramie contracts to provide cattle-herding services to Miles for $1,400 per month. Laramie cannot transfer this duty​

• A) ​under any circumstances.
• B) ​without continuing to be potentially liable.
• C) ​without Miles's consent.
• D) ​without paying Miles at least one monthly fee.

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Definitions:

Average Revenue

The average amount of money received per unit of product or service sold, calculated by dividing total revenue by the number of units sold.

Marginal Revenue

The additional revenue that a firm receives from selling one more unit of a product or service.

Marginal Cost

The extra financial burden of manufacturing an additional unit of a product or service.

Price Takers

Firms or individuals who accept the market price as given and have no power to influence that price due to the competitive nature of the market.