Which of the Following Statements Is the Best Definition of a 'Formal

question 9

Multiple Choice

Which of the following statements is the best definition of a 'formal contract'?

• A) A contract that does not require a special form but must have consideration present.
• B) A contract created by conduct or the actions of parties.
• C) A contract created by written or oral words.
• D) A contract that requires a special form or method of creation.

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Definitions:

Monopolistically Competitive

A market structure characterized by many firms selling products that are substitutes but differentiated, allowing for some control over prices.

Prices

Prices represent the amount of money expected, required, or given in payment for something.

Economic Profits

The surplus generated from business activities after subtracting both explicit and implicit costs, including opportunity costs.

ATC

Average Total Cost is the sum of all production expenses divided by the quantity of output produced, representing the per unit cost of production.