1. Fred takes Betty to dinner at a very expensive and exclusive restaurant. The menu does not mention prices. The server takes their order, and both Betty and Fred enjoyed the meal immensely. When the bill comes, Fred refuses to pay because the menu had no prices and because he and the server never engaged in language indicating an offer and acceptance. The server said, “Are you ready to order?” and when Fred said “Yes,” the server merely asked, “What may I get you tonight?”

Fred must pay based on a promissory estoppel theory.

Fred must pay based on expressed contract theory.

Fred is correct because no contract was formed.

Fred must pay based on an implied-in-fact contract theory.

2. The DeBeers company is a profit-maximizing monopolist that exercises monopoly power in the distribution of diamonds. If the company earns positive economic profits this year, the price of diamonds will:

Be equal to the average total cost of diamonds.

Exceed the marginal cost of diamonds but equal to the average total cost of diamonds.

Be equal to the marginal cost of diamonds.

Exceed both the marginal cost and the average total cost of diamonds

3. Jay stops at the shopping mall to purchase a new pair of jeans from the Diesel store.  He is the ultimate consumer in a pipeline from the producer through intermediaries, including the clothing store.  This pipeline is actually a__________.

marketing tunnel