Fact Pattern 10-1

question 24

Multiple Choice

Fact Pattern 10-1
Moore Properties, Inc., offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for “$112,000.” After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as “$121,000.”


-Refer to Fact Pattern 10-1.Moore's misstatement of the price is

• A)a bilateral mistake.
• B)a fraudulent misrepresentation.
• C)a unilateral mistake.
• D)unconscionable.

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Definitions:

Fixed Costs

Costs that do not change with the level of output produced, such as rent, salaries, and loan payments.

Marginal Cost

The monetary outlay for producing an additional unit of a good or service.

Fixed Costs

Expenses that do not change in the short term regardless of the level of production or sales, such as rent and salaries.

Average Total Cost Curve

A graph that shows the per unit cost of production at various levels of output.