If a Principal Wants to Keep Her Identity Secret,she Would

question 16

Multiple Choice

If a principal wants to keep her identity secret,she would use

• A) a disclosed agency.
• B) a partially disclosed agency.
• C) an undisclosed agency.
• D) an independent agency.

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Definitions:

Marginal

Term used to describe the effects of a change in the current situation. For example, a producer’s marginal cost is the cost of producing an additional unit of a product, given the producer’s current facility and production rate.

Average Increasing

A situation in which the average cost of production goes up as the quantity produced increases.

Long-run Average Total Cost

The average cost per unit of output produced over a period during which all inputs, including capital, are variable.

Diseconomies of Scale

The situation in which a business experiences an increase in average costs per unit when output is increased beyond a certain point.