Martha Entered into a Contract with Terry,an Art Dealer

question 46

Multiple Choice

Martha entered into a contract with Terry,an art dealer.According to the contract Terry was to supply 18^th century artifacts to Martha for the play she was directing.Martha was paying $50,000 for this.Another director needed the same wigs and was ready to pay $60,000.Terry decided not to sell the artifacts to Martha.In this case,the court may order Terry to:

• A)specifically perform the contract.
• B)repudiate the contract.
• C)pay nominal damages.
• D)substantially perform the contract.

---

Definitions:

Constant Returns to Scale

A situation where increasing all inputs by the same proportion results in output increasing by that same proportion, indicating linear scalability of production processes.

Economies of Scale

Refers to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per-unit cost as output increases.