Refer to the Information Provided in Table 8 -Refer to Table 8

question 352

Multiple Choice

Refer to the information provided in Table 8.5 below to answer the question(s) that follow.
Table 8.5
$$\begin{array} { c c c c c c c c } \hline \begin{array} { c } \text { Number of } \\\text { Swords }\end{array} & \text { TVC } & \text { MC } & \text { AVC } & \text { TFC } & \text { TC } & \text { AFC } & \text { ATC } \\\hline 0 & & & & & 50 & \\\hline 1 & & 25 & & & & & \\\hline 2 & & & & & &&47.50 \\\hline 3 & & & 23.33 & & & \\\hline 4 & & & & & 150 & & \\\hline 5 & 135 & & & & & & \\\hline\end{array}$$
-Refer to Table 8.5. Assume that Phoebe is producing swords in a perfectly competitive market and the market price for swords is $30. To maximize profits Phoebe should produce ________ swords.

• A) two
• B) three
• C) four
• D) five

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Definitions:

Ratification Agency

The process by which a principal approves and accepts the acts of their agent that were done without proper authority or beyond the scope of their authority.

Implied Authority

Power not explicitly granted to an agent but necessary to carry out the agent's duties effectively.

Expressed Agency

A legal relationship where an agent is explicitly granted the authority by the principal to act on their behalf.

Apparent Agency

The legal doctrine that allows a third party to hold a principal liable for the acts of an agent, where the principal has given the appearance of agency.