If a Product Is Inherently Dangerous So That No Amount

question 39

Multiple Choice

If a product is inherently dangerous so that no amount of due care could make it safe,_____.

• A) the manufacturer is required to give the consumer notice of the unreasonable danger
• B) privity bars recovery
• C) contributory negligence prevents recovery
• D) the manufacturer is required to provide the consumer a disclaimer at the time of sale

Interpret the effects of market conditions on a firm’s profit and production decisions.

Understand the optimal output rule and its application in perfect competition.

Recognize the characteristics of perfectly competitive markets including easy entry and product standardization.

Analyze the relationship between a firm's marginal cost curve and its supply curve.

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Definitions:

Uncovered Put Option

A type of options strategy where the seller of the put option does not have a sufficient position in the underlying asset, exposing them to potentially unlimited losses.

Digital Option

A financial instrument that provides a fixed return if the market price is above (for a call) or below (for a put) a certain level at expiration.

Bull Money Spread

A type of options strategy that is used when an investor expects a moderate rise in the price of the underlying asset.

Calls

Calls are options contracts giving the holder the right, but not the obligation, to buy a specified amount of an underlying security at a predetermined price within a specified time frame.