A Contract Is Created by Which the Terms Are Stated

question 10

Multiple Choice

A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

• A) the contract will be interpreted to be for $3,000.
• B) the contract will be interpreted to be for $4,000.
• C) there is a contract but the courts will not specify the dollar amount, as a conflict exists.
• D) a compromise settlement amount of $3,500 will be used.

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Definitions:

Marginal Cost

The cost increase associated with the creation of one additional unit of a good or service.

Profit Maximizing

The process by which a firm determines the price and output level that returns the greatest profit.

Marginal Revenue Curve

A graphical representation that shows the change in total revenue for every unit increase in the quantity of output sold.

Demand Curve

A graphical representation showing the relation between the price of a good and the quantity demanded by consumers.