A Firm Is Currently Employing 10 Workers

question 28

Multiple Choice

A firm is currently employing 10 workers.To hire an 11th worker,it must raise its weekly pay by $5 and pay the 11th worker $100.What is the marginal expense of the hiring the 11th worker?

• A) $100
• B) $150
• C) $105
• D) $5

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Definitions:

Principal

The primary individual or entity involved in a transaction or contract, or a sum of money lent or invested on which interest is paid.

Actual Authority

The express and implied powers granted by a principal to an agent to enter into contracts or make decisions on behalf of the principal.

Apparent Authority

A doctrine in law where a principal leads a third party to believe that an agent has the authority to act on the principal's behalf, even if the agent doesn't have actual authority.

Agency Contract

A legal agreement wherein one party (the agent) agrees to act on behalf of another party (the principal) in a business transaction or other matter.