The Manager of Mack's Bar Sent Olive Outlet an Order

question 26

Multiple Choice

The manager of Mack's Bar sent Olive Outlet an order for 200 cases of olives to be shipped "as soon as possible." The day Olive Outlet receives Mack's order, it ships the olives. Later that day, Mack's manager phones Olive Outlet and tries to revoke his offer. Under these circumstances:

• A) Mack's Bar cannot revoke because a contract was created when Outlet shipped the olives.
• B) Mack's Bar can revoke because the acceptance had not been received.
• C) Mack's Bar can revoke based on principles of promissory estoppel.
• D) Mack's Bar cannot revoke, since the olives will spoil if they are shipped back.

Grasp the concept of opportunity cost in decision-making processes.

Distinguish between private and common ownership and its implications on care and conservation of resources.

Appreciate the role of technology and efficient communication in reducing transaction costs and enabling greater volumes of trade.

Understand the economic rationale for specialization and comparative advantage in producing goods and services.

---

Definitions:

Rate of Return

A financial metric used to calculate the percentage profit or loss of an investment relative to its cost.

Beta Risk

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole.

Diversified Portfolio

An investment portfolio constructed to spread risk by selecting assets across various classes.

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage of the investment's cost.