Describe the Purpose of the Doctrine of Promissory Estoppel and List

question 20

Essay

Describe the purpose of the doctrine of promissory estoppel and list the three elements required to prove it in court.Give an example to illustrate the use of a promissory estoppel.

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Definitions:

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for differentiation and some degree of market power.

Long Run

A period in which all factors of production and costs are variable, allowing companies to adjust to changes in the market.

Monopolistically Competitive

A market structure where many competing producers sell products that are differentiated from one another (e.g., by branding or quality) and hence are not perfect substitutes.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, measuring the firm’s performance beyond its accounting profit.