S Agrees to Sell B 10,000 Widgets at a Price

question 19

Multiple Choice

S agrees to sell B 10,000 widgets at a price of $1.00 per widget.After B breaches the contract,S resells the widgets for $0.90 per widget.However,this costs S an additional $100 in sales commissions.S saved $200 in shipping costs as the new customer was located closer to its factory.What amount can S recover from B?

• A) $900
• B) $100
• C) $1,100
• D) $1,000

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Definitions:

Total Output

The total quantity of goods or services produced by an economy, firm, or manufacturing process within a specific time period.

Units

Basic quantitative measures used in economics and commerce to count, describe, and measure the amount of a product or commodity.

Least-Cost Combination

is an economic principle that firms achieve by using the mix of inputs that minimize their costs while producing a given level of output.

MRP

Marginal Revenue Product; the additional revenue generated by employing one more unit of a resource or factor of production.