When Goods Are Shipped COD

question 2

Multiple Choice

When goods are shipped COD:

• A) the buyer always has the right to examine them before making payment.
• B) the underlying contract must specify when the buyer may inspect the goods.
• C) the buyer has no right to examine the goods until payment is made.
• D) the buyer gives up all rights to inspection of the goods.

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Definitions:

Perfectly Price Discriminate

A situation where a seller charges each buyer their maximum willingness to pay, capturing all consumer surplus as profit.

Surplus

A condition where the supply of a product or service surpasses its demand at the existing price.

Monopolist

A Monopolist is a market participant who has exclusive control over the market for a particular good or service, facing no competition.

Perfectly Price Discriminate

A theoretical pricing strategy where a seller charges the maximum possible price that each consumer is willing to pay.