If an Offer Is Made by Mail and an Acceptance

question 25

Multiple Choice

If an offer is made by mail and an acceptance by mail is requested,when does a letter revoking the previous offer actually take effect?

• A)at the time it is posted
• B)at any time before a letter of acceptance is received by the offeror
• C)at the time it is received,if before acceptance
• D)Never.A revocation must be done in person.
• E)at any time before actual performance of the contract has begun

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Definitions:

Market Price

The prevailing cost at which a service or product can be acquired or disposed of in a marketplace.

Marginal Cost

The cost of producing one more unit of a good or service, which can vary depending on the level of production.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, reflecting the cost per unit of output.

Market Price

The present cost for purchasing or selling an asset or service in a market environment.