Mel, Who Is Age 17 but Looks Older Than 18

question 22

True/False

Mel, who is age 17 but looks older than 18, makes a contract to buy a car from Maisie, who is the age of majority.Maisie finds out Mel's age.Maisie may avoid the contract even if Mel did not misrepresent his age.

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Definitions:

Average Total Cost

The total cost of production divided by the total quantity produced.

Monopolistically Competitive Firms

Companies in a market structure where many firms sell products that are similar but not identical, competing on factors besides price.

Economic Profits

The financial gain exceeding the total costs, including both the explicit and implicit costs, of a business operation.

Long Run

A period in economics sufficient for all markets to adjust to equilibrium, including the production and entry and exit of firms.