A Fixed Factor of Production

question 40

Multiple Choice

A fixed factor of production:

• A)is fixed in the long run but variable in the short run.
• B)is fixed only in the short run.
• C)is fixed in both the short run and the long run.
• D)is common in large firms but rare in small firms.

Evaluate the impact of design defects, warning defects, and manufacturing defects on product liability.

Understand the concept of strict liability and its application.

Recognize the significance of warnings and their adequacy in product use.

Distinguish between various parties' liability in the stream of commerce.

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Definitions:

Payor Banking Group

A consortium or group of banks that manages the payment and settlement of transactions for clients.

Written Stop Payment Order

A formal request made to a bank by an account holder instructing the bank not to pay a specific check or payment.

Affirmative Duties

Obligations requiring individuals or entities to take certain actions or measures, often imposed by law or contract.

Assert Their Rights

To take actions or steps to claim or enforce one’s legal entitlements or privileges, often in the face of opposition or indifference.