Hot Toaster

question 93

Multiple Choice

Hot Toaster.Rebecca bought a toaster from Super Store and brought it home.A friend of hers,Greg,was at her house making toast.The toaster malfunctioned and shocked Greg,resulting in a small burn to his hand requiring medical attention.At a garage sale,Rebecca also purchased a blender from a friend,Samantha.When she paid for the blender,Rebecca said that it would be great for making smoothies.Samantha said nothing and just smiled while taking Rebecca's money.Unfortunately,the blender was not powerful enough to make smoothies.Which of the following rights,if any,does Greg have against Super Store in most states?

• A)None,because he did not buy the toaster.
• B)None,because he is not married to Rebecca.
• C)None,because he is not married or otherwise related to Rebecca.
• D)He may sue,but only if Rebecca joins him as a co-plaintiff in the lawsuit.
• E)He may sue Super Store for his injuries.

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Definitions:

Economies of Scope

Cost advantages that a business obtains through the diversification of its production by producing multiple products from joint inputs.

Economies of Scale

Businesses gain financial benefits from their size of operation, as the cost for each unit of output typically reduces with the expansion of scale.

Economies of Scope

Cost advantages that enterprises obtain due to the efficient management of diverse business activities that enable them to share resources and capabilities across different products or segments.

Product Transformation Curve

Another term for the "production possibility frontier," which shows the different quantities of two goods that can be produced with a given set of resources.