An Assignor Who Assigns the Contract Will Be Relieved of the Duty

question 12

Multiple Choice

An assignor who assigns the contract will be relieved of the duty to perform to the other party on the original contract when:

• A)the assignee gives notice to the other party.
• B)there has been a novation of the original contract.
• C)the assignee contracts to successfully perform the duties.
• D)the contract of assignment explicitly states that the assignor is no longer liable to the other party.

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Definitions:

Consumer Surplus

The disparity in the consumers' desired payment amount for a good or service and the actual expense they bear.

Natural Monopoly

A market condition where a single firm can supply a product or service at a lower cost than any potential competitor, often due to economies of scale.

Large Fixed Costs

Expenses that do not change in total regardless of changes in the volume of goods or services produced.

ATC

Average Total Cost, which is calculated by dividing the total cost of production by the quantity of output produced.