In Which of the Following Does a Person Have a True

question 30

Multiple Choice

In which of the following does a person have a true lease?

• A) When he spends the night in an inn.
• B) When a person contracts for a room in a boarding house for one month.
• C) When a person's one-year lease has expired and he has paid no further rent, but remains on the premises contrary to the wishes of the lessor.
• D) When he has been given permission to sleep on a cot in the dark room used at the photography shop where he works.
• E) When he has contracted for a warehouse for a two-week period commencing June 1, 2001.

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Definitions:

Price-Taker Market

A market condition where individual buyers or sellers have no power to influence the price of goods and services, typically due to high competition and standardized products.

Economic Profits

The difference between a firm's total revenues and its total opportunity costs.

Barriers to Entry

Economic, procedural, regulatory, or technological factors that obstruct or limit the possibility of new competitors entering an industry.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments and the market to stabilize at a point where supply equals demand.