Adam Contracts to Sell Ben 100 Widgets for $100 for Use

question 45

Multiple Choice

Adam contracts to sell Ben 100 widgets for $100 for use in Ben's factory.Adam does not know that Ben's factory is closed as it is waiting for supply of widgets from Adam.Will Adam be liable for the damages caused due to late delivery?

• A)Will be liable for compensatory damages.
• B)Will be liable for consequential damages.
• C)Will not be liable for any damages.
• D)Will be liable for nominal damages.

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Definitions:

Economies of Scale

Operational scale brings about cost reductions for firms, with each unit's production cost decreasing as the operation's scale enlarges.

Economies of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production.

Price Competition

A market situation where sellers compete primarily on the price of their goods or services, often leading to lower prices for consumers.

Oligopolistic Industries

Markets or industries dominated by a few large firms, where each firm has some market power and their decisions affect each other.