Colleen Telephoned an Off-Campus Computer Store and Ordered Five Flash

question 6

Multiple Choice

Colleen telephoned an off-campus computer store and ordered five flash drives at $10 apiece. Later that day she observed that they were a very good buy; she called the store the next day to order 60 of them (for resale to her dorm-mates at a slight profit) . Which is true?

• A) The modification is void for lack of consideration.
• B) The modified agreement is unenforceable.
• C) The changed agreement is entirely enforceable.
• D) The modified contract is void.

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Definitions:

Marginal Cost

The extra cost involved in producing one more unit of a product or service.

Cartel

An association of independent companies or organizations formed to control production, pricing, and marketing of goods to suppress competition.

Perfectly Competitive

A market structure where there are many buyers and sellers, goods are homogeneous, and there is free entry and exit in the market.

Marginal Cost

The boost in overall cost that comes from generating one extra unit of a product or service.