Debt Collection Service Enters into a Contract to Employ Emma

question 52

Multiple Choice

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

• A)discharges the employer from the contract.
• B)has no effect on the employer's performance.
• C)changes the employer's duties under the contract.
• D)suspends the employer's duty to perform.

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Definitions:

Marginal-cost Pricing

A pricing strategy where the price of a product is set equal to the additional cost of producing one extra unit of output.

Productive Efficiency

A state where an economy or firm produces goods or services at the lowest possible cost, using resources in the best possible manner without waste.

Managerial Incentives

Incentives designed to motivate managers to make decisions that align with the owner's or shareholders' interests.

Pure Monopolist

A single supplier in a market that controls all the goods or services, with no close substitutes and high barriers to entry.