A Local Electricity-Generating Company Has a Monopoly That Is Protected

question 51

Multiple Choice

A local electricity-generating company has a monopoly that is protected by an entry barrier that takes the form of

• A) control of a key raw material.
• B) network externalities.
• C) economies of scale.
• D) perfectly inelastic demand curve.

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Definitions:

Accord and Satisfaction

Accord and satisfaction is a legal contract where a dispute is settled by the parties involved agreeing to give and accept something of value in different terms than the original agreement.

UCC Section 3-311

A provision in the Uniform Commercial Code that addresses the accord and satisfaction by use of a negotiable instrument.

Paid-in-Full Check

A paid-in-full check is a check by which the issuer intends to settle a debt completely, often accompanied by a statement indicating that the payment is meant to resolve the obligation in full.

Different Performance

Fulfillment of contractual obligations in a manner that is different from what was specifically agreed upon, sometimes acceptable with mutual consent.