Answer:
True
Explanation:
The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).
In short, the profit = (price - average total cost) x number of product sold.
Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.
Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.
The body of law that governs oral and written agreements associated with the exchange of goods, services, money and property is known as <u>contract law</u>.
<h3>What is contract law?</h3>
Contract law can be defined as a set of law that governs oral and written agreements between two or more parties with respect to the buying and selling of goods, services, debt, loans, property, etc.
<h3>What is a contract?</h3>
A contract can be defined as a formally written agreement between two or more parties such as a group of people, team, etc., which primarily gives rise to a mutual legal obligation that is enforceable by law across specific jurisdiction in the world.
<h3>The types of contract.</h3>
Generally speaking, there are different types of contract in business and these include the following:
- Fixed-price contract
- Cost-plus contract
- Bilateral contract
- Implied contract
- Unilateral contract
- Adhesion contract
- Unconscionable contract
- Option contract
- Express contract
- Executory contract
Read more on a contract law here: brainly.com/question/28180355
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Answer: See explanation
Explanation:
Price leadership is when a leading firm that is in a particular industry has enough influence such that it can determine the price of the goods in the market. There are three main models of price leadership which are the barometric price leadership, collusive price leadership and the dominant price leadership.
Barometric price leadership is when the price leader acts as the barometer of the prevailing market conditions for the other firms that are in the industry. In such case, when a company sets the price of the products, the other companies do the same.
The dominant price leadership model occurs when a firm has the large amount of market share in the industry.