Is the Manager Correct in Saying That Julio's Only Recourse

question 29

Multiple Choice

Is the manager correct in saying that Julio's only recourse is against Ramona?

• A)The manager is incorrect,and Julio can sue Slick Sid's.
• B)The manager is correct.
• C)The manager is incorrect only if Julio has a writing signed by a representative of the repair shop guaranteeing the safety of the car.
• D)The manager is correct only if Ramona's deal was for less than 10% of the fair market value of the car.
• E)The manager is correct only if Ramona can be found.

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Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell.

Marginal Cost Curve

A graphical representation showing how the cost of producing one more unit of a good varies with the level of output.

Average Revenue

Total revenue from the sale of a product divided by the quantity of the product sold (demanded); equal to the price at which the product is sold when all units of the product are sold at the same price.

Average Cost

is the cost per unit of output, calculated by dividing total costs by the total quantity of output produced.