You and Your Neighbor Have Agreed to a Contract Where

question 142

Multiple Choice

You and your neighbor have agreed to a contract where he will cut your grass every other week for which you pay $30.However,for no apparent reason,he has not cut your grass for a month.Your neighbor has committed an) :

• A)obligation violation.
• B)breach of contract.
• C)termination by association.
• D)nonperformance endorsement.

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Definitions:

Diseconomies of Scale

The phenomenon when a firm experiences increased costs per unit of output due to inefficiencies associated with scale of production, contrary to economies of scale.

Long-run ATC

Referring to the average total cost of production when all inputs, including capital, are variable over a longer period.

Average Fixed Costs

When the production expenses that stay uniform, regardless of production levels, are divided by the number of goods produced.

Average Total Cost

The total cost of production divided by the total quantity of goods or services produced, representing the average cost per unit of output.