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If Variable Cost Is $15 Million,fixed Cost Is $14 Million,and

question 4

Multiple Choice

If variable cost is $15 million,fixed cost is $14 million,and total revenues are $13 million,in the short run the firm will _____ and in the long run the firm will ____.


Definitions:

Onerous Exemption Clause

A term in a contract that imposes heavy obligations on one party, which may be difficult to fulfill.

Aggrieved Purchaser

A buyer who has suffered because of a breach of contract or misrepresentation during a purchase.

Fundamental Breach

A severe violation of a contract that justifies the aggrieved party's right to terminate the agreement and seek damages.

Condition

An essential term of a contract.

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