An Increase in the Price of a Firm's Output Increases

question 332

Multiple Choice

An increase in the price of a firm's output increases the firm's demand for labor because the

• A) marginal product of each worker increases.
• B) value of marginal product of each worker increases.
• C) value of marginal product curve becomes steeper.
• D) value of marginal product curve becomes flatter.

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Definitions:

Apparent Authority

a situation where a person appears to have the authority to act for another, leading a reasonable third party to believe that authority exists.

Real Estate Development

The process of purchasing land, financing real estate deals, building or having buildings constructed, and selling or leasing the finished product to end-users.

Express Authority

Is the specific powers granted by a principal to an agent in a contractual agreement to perform certain actions on behalf of the principal.

Disclosed Principal

In agency law, a principal whose identity is known by the third party at the time the agent makes a contract with the third party.