Assume that the high costs of performing cause the promisor, Microeconomics

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Assume that the high costs of performing cause the promisor

1. Assume that the high costs of performing cause the promisor to breach a contract and pay perfect expectation damages to the promisee. Would the promisee have preferred that the promisor perform?

2. Explain the gain in total payoffs from allowing the promisor to breach and pay expectation damages when performing is efficient.

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Microeconomics: Assume that the high costs of performing cause the promisor

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Microeconomics: Assume that the high costs of performing cause the promisor

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