Mike Is Walking Through a Parking Lot and Finds Kathy

question 38

Multiple Choice

Mike is walking through a parking lot and finds Kathy lying unconscious.He puts her in his car and takes her to the hospital.The hospital saves her life and when she becomes conscious they present her with a bill.

• A) Kathy has to pay based on a unilateral contract
• B) Kathy has to pay based on an implied contract
• C) Kathy has to pay based on a quasi contract
• D) Mike has to pay because he brought her to the hospital

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Definitions:

Demand Schedule

A table that shows the quantity of a good that consumers are willing and able to purchase at various prices.

Total Utility

The overall satisfaction or value a consumer derives from consuming a certain amount or quantity of goods and services.

Marginal Benefit

The maximum price a consumer will be willing to pay for an additional unit of a product. It is the dollar value of the consumer’s marginal utility from the additional unit, and therefore it falls as consumption increases.

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen over others.