Written Contracts That Call for Performance Over a Considerable Period

question 46

Multiple Choice

Written contracts that call for performance over a considerable period of time and thus increase the risk of faulty or willfully inaccurate recollection of their terms in subsequent disputes are called:

• A)long-term bilateral contracts.
• B)collateral contracts.
• C)guaranty contracts.
• D)international contracts between companies in signatory countries.

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Definitions:

ATC

Stands for Average Total Cost, which is the total cost of production (fixed plus variable costs) divided by the number of units produced.

Economic Profits

A reiteration emphasizing the calculation that includes total revenues minus total costs, where total costs consider both the explicit and implicit costs.

Competitive Price-searcher Market

A market structure where firms have some degree of market power, enabling them to set prices above marginal cost, but must consider competitor prices to attract consumers.