In the Case in the Text,Drake Manufacturing Company,Inc

question 7

Multiple Choice

In the case in the text,Drake Manufacturing Company,Inc.v.Polyflow,Inc. ,why did the court find in favor of the defendant?

• A)The plaintiff's actions in Pennsylvania constituted "doing business" and it failed to timely obtain a certificate of authority.
• B)Although the plaintiff's actions did not constitute "doing business" its use of the certificate of authority during post-trial proceedings was erroneous.
• C)The lower court abused its discretion when it found in favor of the defendant because its activities in the state did not make it liable in that state.
• D)The plaintiff was not properly incorporated in any state.

---

Definitions:

Total Cost

The complete cost of production, including both fixed and variable costs associated with the production of a good or service.

Units of Variable

A concept in economics that refers to the variable elements of production, such as labor hours, materials, or energy consumed, which change with the level of output.

Price of Labor

The compensation paid to employees for their work or services, typically in the form of wages or salaries.

Average Variable Cost

The cost a company incurs for each unit of output produced, excluding any fixed costs.