Nell Exceeds Her Authority When Making a Contract for Denver

question 56

True/False

Nell exceeds her authority when making a contract for Denver. If he ratifies the contract, both Nell and Denver are in the same position as the one they would have been in had Denver actually authorized the act originally except that Nell is not entitled to compensation.

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Definitions:

MC

The additional cost incurred for producing one more unit of a good or service; it's synonymous with marginal cost.

Marginal Cost

is defined as the increase in total production cost that arises from producing an additional unit of a good or service.

TVC

Total Variable Costs, which are the sum of expenses that vary directly with the level of production or business activity.

TFC

Total Fixed Costs, which are the sum of all costs that remain constant regardless of the level of production or output.