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Timmy Tyler, 52 years old, was fired by his employer, University Tool and Dye. After he was fired, Timmy received a letter from University Tool and Dye offering him $30,000 in severance pay in exchange for a settlement and release of Timmy's age discrimination claims against the company. Timmy signed the settlement and release and put it in a mailbox outside the post office. Three hours later, Timmy changed his mind and called the director of Human Resources at University Tool and Dye. Timmy told the director of Human Resources that $30,000 was not enough money to get him to settle and that he was going to file a lawsuit against University for age discrimination. University Tool and Dye had not yet received Timmy's signed settlement and release when Timmy made the phone call. After Timmy files his lawsuit, University Tool and Dye asks the court to dismiss the lawsuit because Timmy had signed the settlement agreement and release.
How should the court rule?
The learning effect is one form of: a)diversification b) creating value through increasing transactions costs c) creating value through stabilizing transactions costs, d) creating value through decreasing transactions costs
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