Suppose That You Own Two Farms on Which to Grow

question 12

Multiple Choice

Suppose that you own two farms on which to grow corn. Farm 2 has a lower marginal cost of producing corn than Farm 1. To lower total cost of production, you should produce:

• A) all on Farm 1.
• B) all on Farm 2.
• C) some on Farm 1 and some on Farm 2.
• D) neither on Farm 1 nor on Farm 2.

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Definitions:

Misrepresentation

The act of providing false, misleading, or incorrect information about a material fact in a contract.

Specific Performance

A legal remedy requiring a party to fulfill their obligations under a contract, rather than paying damages for failure to do so.

Lack of Capacity

A legal term referring to an individual's inability to enter into a contract due to mental incompetence or age.

Duress

Unlawful pressure exerted upon a person to coerce them into an action against their will, often making a contract voidable.