AutoCorp Is a Reputed Automobile Manufacturer While SUVmart Is an Independent

question 30

Multiple Choice

AutoCorp is a reputed automobile manufacturer while SUVmart is an independent distributor who buys automobiles from the former.During the current year,SUVmart wants to buy 250 Rhinos from AutoCorp who wants to charge an upfront franchise fee.The franchise fee charged by it:

• A)can be anything below MC so as to guarantee SUVmart's profits.
• B)can be anything above MC so as to guarantee some profits for AutoCorp.
• C)has to be equal to TC so that AutoCorp breaks even on the deal.
• D)has to be equal to MC.

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Definitions:

Union Activity

Refers to the actions and endeavors undertaken by trade unions to represent and protect the interests of their members, including collective bargaining, strikes, and advocacy.

Retaliated

Acted against someone in response to a perceived wrong; often involves punitive actions in a conflict or dispute.

Judicial Precedent

Legal cases that establish principles or rules that courts may follow in deciding subsequent cases with similar issues or facts.

Injunction

A judicial order that restrains a person from beginning or continuing an action threatening or invading the legal right of another individual.