For an Offer to Be Valid

question 66

Multiple Choice

For an offer to be valid:

• A) the offeree must have knowledge of the offer.
• B) the offeree must have first-hand knowledge of the offer.
• C) the offer must be stated or communicated by words.
• D) the offer must be made by the offeror.

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Definitions:

Marginal Utility

The added delight or usefulness a person acquires by consuming an extra unit of a good or service.

Utility Theory

A concept in economics that suggests individuals make decisions based on the expected utility or satisfaction they will derive from those decisions.

Consumer Surplus

The disparity between what consumers are inclined and financially able to spend on a good or service compared to what they ultimately pay.

Marginal Utility

The boost in satisfaction or utility a person enjoys from consuming another unit of a good or service.