Here is a timeline for breach of contract that leads to litigation.

On Jan. 1, A contracts to deliver a widget to B on June 1 at a price of $2 to be paid on delivery. As a result of signing this contract, B decides not to sign a similar contract with another dealer for $2.5.

On April 1, A renounces the contract. At that time, B can buy a widget for immediate delivery for $3, or B can contract with C to deliver a widget on June 1 at a price of $3.25. B does not buy a widget for immediate delivery or contract for future delivery.

On June 1, Bs suit against A succeeds. The court finds that A breached the contract on April 1.

On June 1, B can buy a widget for $4.

a. How would you measure expectation damages for As breach of contract with B? (10 points)

b. How would you measure reliance damages? (10 points)

c. How would you measure opportunity-cost damages? (10 points