Lou and Mira Want to Rescind Their Contract Under Which

question 67

Multiple Choice

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

• A) Lou must return the $50 and Mira must return the player.
• B) Lou must return the $50 only.
• C) Mira must return the player only.
• D) the parties can keep the "benefits" of their bargain.

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Definitions:

Monopolistically Competitive

Monopolistically competitive refers to a market structure where many firms sell similar but not identical products, with each firm having some degree of market power.

Short Run

A time period in which at least one factor of production is fixed, focusing on immediate effects.

Long Run

A period of time in economics where all factors of production and costs are variable, allowing full industry adjustment.

Economic Profit

The profit a company makes after subtracting both its explicit and implicit costs, including opportunity costs, from its total revenues.