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Assume that the only variable resource used to produce output is labor. Refer to the provided table. Diminishing marginal returns set in with the addition of the
Principal
The main party to a transaction, such as a borrower in a loan agreement or a buyer in a sales contract.
Contract
An enforceable pact by law that involves two or more individuals or groups.
Legal Capacity
The capability recognized by law for a person to act in a particular role or enter into a contract, often related to age and mental soundness.
Express Authority
The power granted to an agent or representative explicitly stated by the principal in a written or oral form.
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