Jim and Kiel Agree That Jim Will Fix the Refrigeration

question 53

Multiple Choice

Jim and Kiel agree that Jim will fix the refrigeration unit in Kiel's Food Truck in exchange for payment of a debt that Jim owes to Lenders Bank. Under this contract, the intended beneficiary is

• A)Kiel's Food Truck.
• B)Lenders Bank.
• C)Jim.
• D)any customer, client, or employee of Kiel's Food Truck or Lenders Bank.

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Definitions:

Average Product

The yield generated for every unit of a production input, determined by dividing the overall output by the amount of the input used.

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.