Jon Was Developing a Computer Program for Use by Owners

question 140

Multiple Choice

Jon was developing a computer program for use by owners of track clubs to aid them in keeping records of the members, their runs, times, injuries, etc. Eager to finish the program, Jon, in Edmonton, called his friend Sam, in Calgary, and offered him $4000 to help: five hours working per day, for five days week, for five weeks. Sam said that he would have to think about it. Jon told Sam that he was eager to get going, but that he would hold the offer open until Friday, February 6, at noon. Which of the following is true? (Read each separately.)

• A) If Sam accepts by phone within the time specified in the offer, the place of contract would be Calgary.
• B) If Jon goes ahead and hires Betsy from Edmonton at noon on February 3, it would be too late for Sam to accept.
• C) If Jon revokes his offer before Friday noon, Sam could sue him for breach of contract because he promised to hold it open.
• D) If the court held that acceptance by mail was reasonable in the circumstances, if Sam accepts by mail the place of contract is Edmonton.
• E) If Sam wants to ensure the promise to keep the offer open until noon, February 6, he should give Jon some consideration (that is, allow him to purchase an option).

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Definitions:

Marginal Social Cost

The total cost to society of producing an additional unit of a good, including both the private costs borne by the producer and any external costs inflicted on others.

Social Optimum

The most efficient allocation of resources in a society, achieving the best outcomes for social welfare.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they can be used by anyone without preventing others from using them as well.

Voluntary Contributions

Donations or services provided by individuals or organizations willingly without any legal or social obligation.