A Product Liability Action Based on Negligence Does Not Require

question 2

True/False

A product liability action based on negligence does not require the plaintiff and the defendant to be in privity of contract.

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Definitions:

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Kinked-Demand Model

An economic model suggesting that prices in an oligopoly are stable because firms will match price decreases but not price increases due to a kink in the demand curve.

Price Changes

Adjustments in the cost of goods or services in the economy, which can be influenced by factors such as supply and demand or inflation.