With a Simple Delivery Contract in Which the Seller Is

question 17

Multiple Choice

With a simple delivery contract in which the seller is a merchant,which party sustains the loss if,through no fault of either party,the goods are destroyed through fire prior to delivery to the buyer?

• A)The seller
• B)The buyer
• C)Both the buyer and seller,with the loss being apportioned 50% to the buyer and 50% to the seller
• D)Both the buyer and seller,with the loss being apportioned 75% to the buyer and 25% to the seller
• E)Both the buyer and seller,with the loss being apportioned 25% to the buyer and 75% to the seller

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Definitions:

TVC

Total Variable Cost, which refers to the total of all costs that vary with the level of output in the production of goods or services.

Short Run

In economics, a period in which at least one factor of production is fixed and cannot be changed.

Total Variable Cost

Represents the sum of all costs that vary with the level of output production, excluding fixed costs.

Total Cost

The sum of all costs associated with the production of a specific quantity of a good or service, including both fixed and variable costs.