NK
Answered
What are the two tests for mental competency?
On Jul 10, 2024
One test is the cognitive ability test. Under this test, a person is mentally incompetent if he is unable to comprehend the subject of the contract, its nature, and its probable consequences. He need not be proved permanently incompetent to avoid the contract, but his mental defect must be something more than a weakness of intellect or a lack of average intelligence. A second test, recognized by the Restatement and some states, is whether a person's mental condition impairs his ability to act reasonably. The person understands what he is doing, but he cannot control his behavior.
NK
Answered
Using the total revenue and total cost method, determine the level of output the purely competitive firm should produce in the short run?
On May 12, 2024
First, find total revenue by multiplying output (total product)by price. Then find the profit or loss at each output level by subtracting total cost from total revenue. Then find the output level at which the profit is maximized. Graphically, compare the total revenue and total cost curves and find where the vertical distance between them is the greatest.