Fact Pattern 3-1 (Questions 31-33 Apply)

question 54

Multiple Choice

Fact Pattern 3-1 (Questions 31-33 apply)
Bean Vendors, Inc., and Java Bistros Corporation dispute a term in their contract.
-Refer to Fact Pattern 3-1. The least expensive method of resolving the dispute between Bean and Java may be

• A) arbitration because the case will be heard by a mini-jury.
• B) litigation because each party will pay its own legal fees.
• C) mediation because the dispute will be resolved by a non-expert.
• D) negotiation because no third parties are needed.

---

Definitions:

Nondiscriminating

Fair treatment not based on preconceived biases or prejudices.

Marginal Cost

The extra production cost for creating an additional unit of a good or service.

Average Total Cost

Represents the total cost of production (fixed plus variable costs) divided by the total quantity produced, indicating the cost per unit of output.

Subsidized

Financial support extended by the government or another body to reduce the cost of goods, services, or activities to encourage more consumption or participation.