Simon Requested Simple Delivery Service to Pick Up a Refrigerator

question 39

True/False

Simon requested Simple Delivery Service to pick up a refrigerator at his home and deliver it to his cottage,some 100 miles away.Simple Delivery picked up the refrigerator,but through a mix- up in delivery bills,lost the refrigerator.
-In this case,the pickup of the refrigerator by Simple Delivery Service created a bailment.

---

Definitions:

Economic Profit

Profit that accounts for both explicit costs and opportunity costs.

Economic Profit

The financial gain made in a transaction after subtracting both the explicit and implicit costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of output or activity in a business.