Having Recently Saved the Company a Half a Million in Lost

question 38

Short Answer

Having recently saved the company a half a million in lost productivity, Stan was ill-prepared for the unexpected termination of his employment and the humiliation of being escorted from the building. He advised his lawyer that after 25 years of continuous service, his employment contract provided for an annual salary of $120 000, an annual bonus of no less than $35 000, and monthly fringe benefits of $100. What amount will Stan's lawyer ask a court for in damages?
a.
$156 200
b.
$276 200
c.
$331 400
d.
$351 450

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Definitions:

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, each selling identical products, and no single buyer or seller can influence market prices.

Short Run

In economics, it denotes a period in which at least one input (e.g., capital) is fixed and cannot be altered.

Economic Profit

The total revenue of a business minus its explicit and implicit costs; a measure of profitability that includes opportunity costs.

Perfectly Competitive Firm

A company that operates in a perfectly competitive market, cannot influence the market price, and produces at an optimal output level.