Which of the Following Is an Example of a Valid

question 18

Multiple Choice

Which of the following is an example of a valid offer?

• A) Tim advertises in a newspaper to sell his car for $4,000.
• B) A tire manufacturer sends his quotation to a car manufacturer for a particular make of tire at $50.
• C) Walmart advertises that all canned juices in its stores would be available at a discount of 50 percent on the printed price.
• D) A laptop showroom advertises that every laptop purchased would be eligible for a free backpack, subject to availability.
• E) A backyard sale at Castle estate advertising the sale of all items in an auction for up to 50 percent discount.

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Definitions:

Profit-Maximizing

A strategy or level of production where a firm makes the highest possible profit.

Firm

A business organization, such as a corporation, limited liability company, partnership, or sole proprietorship, that sells goods or services.

Fixed Costs

Business expenses that are not affected by the level of goods or services produced by the business, such as rent, salaries, and insurance.

Price-Taking

A market condition where individual buyers or sellers have no influence over the price of a product due to its abundance in the market and the presence of many competitors.