When should parties be allowed to breach a contract?
If the party breaking the contract earns a higher return, even after paying for liquidated damages, compared to the return earned from keeping the contract, they should be allowed to breach the contract.
Economics
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The table above shows Tom's total utility from milkshakes and sodas. Tom's total budget for milkshakes and sodas is $20.00 per week. Milkshakes cost $2.00 each and sodas cost $1.00 each
What quantity of sodas does Tom purchase at his consumer equilibrium? A) five B) six C) seven D) eight
Economics
Opportunity cost can best be defined as
A) the interest cost of financing a business loan at the bank. B) the value of all of the alternatives sacrificed. C) the value of the next-highest-ranked alternative. D) There is no real definition for opportunity cost.
Economics