If a Contractor Has Agreed to Build a House with Payment

question 105

True/False

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of consumers increases, inversely related to normal goods.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and economic forces are balanced, leading to no net inclination to change.

Constant-Cost Industry

An industry in which the costs of production (including input prices) remain constant regardless of changes in the industry's output level.

Long-Run Equilibrium

A situation in which, after all adjustments have been made, all firms in a perfectly competitive market earn zero economic profit and no firm has an incentive to change its output.