Office Applications Company (OAC)orders Six Laser Printers from Printing Products,Inc

question 58

Multiple Choice

Office Applications Company (OAC) orders six laser printers from Printing Products,Inc.(PPI) ,to be delivered by PPI.Before PPI's truck arrives with the goods,OAC tells PPI it will not pay.The printers are lost in transit.The loss is suffered by

• A)OAC only.
• B)OAC to the extent of a deficiency in PPI's insurance coverage only.
• C)PPI to the extent of a deficiency in OAC's insurance coverage only.
• D)PPI only.

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Definitions:

Opportunity Cost

When deciding, the toll of not considering the next most beneficial alternative.

Bracelets

Jewelry items worn around the wrist for decoration, often made of metal, beads, or other materials.

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as a result of making a decision, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Allocatively Efficient

Allocatively Efficient means an economic state where resources are allocated in a way that maximizes the overall benefit to society, with goods and services distributed according to consumer preferences.