If Becky Promises Not to Drink Alcohol Until She Becomes

question 16

Multiple Choice

If Becky promises not to drink alcohol until she becomes a legal adult in exchange for Ben's promise of $1,000,the agreement is

• A)enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.
• B)enforceable because the agreement accomplishes Ben's goal of keeping Becky from drinking.
• C)not enforceable because Becky does not have a legal right to drink alcohol.
• D)not enforceable because Becky is a minor and could disaffirm the contract.

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Definitions:

Variable Cost

Expenses that fluctuate based on the level of production or the amount of output.

Total Cost

The complete cost of producing a specific quantity of output, including both fixed and variable costs.

Average Total Cost

The average cost for each unit produced, calculated by dividing the total production expenses by the quantity of units made.

Variable Cost

Costs that change in proportion to the level of production or sales, such as raw materials and labor expenses.