Alice Has a Contract with a Surgeon to Have a Medical

question 73

Multiple Choice

Alice has a contract with a surgeon to have a medical procedure performed on July 17.The surgeon notifies Alice on July 5 that he is in the Bahamas and will be there until the end of August and will not be able to do the surgery.Which of the following is true at this point?

• A) There will be no breach until July 17.
• B) Alice must wait until July 17,and if the surgeon does not perform the procedure,then Alice can contract with another surgeon.
• C) If Alice contracts with another surgeon prior to July 17,and this second surgeon is aware of Alice's original contract,the second surgeon has no obligation to perform.
• D) Alice is free to contract with another surgeon.

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Definitions:

Returns To Scale

Rate at which output increases as inputs are increased proportionately.

Increasing Marginal Product

A situation where each additional unit of input results in an increased amount of output.

Economic Rents

Extra earnings above the minimum amount necessary to keep a factor of production in its current use.

Accounting Costs

The explicit costs of a business, representing the actual outflows of cash for wages, rent, materials, and other tangible inputs.