Fact Pattern 36-2A

question 1

Multiple Choice

Fact Pattern 36-2A
Hal, Ira, and Jill are partners in Kappa Accessories, a computer peripherals firm.
-Refer to Fact Pattern 36-2A. Ira dissociates from Kappa. Jill signs a con?tract with Micro Drives, a wholesale component supplier, allegedly on Kappa's behalf. Micro knows of Ira's dissociation. The contract is binding on

• A) Hal, Jill, and Kappa only.
• B) Jill only.
• C) Kappa only.
• D) no one.

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Definitions:

Marginal Costs

The upsurge in complete costs linked to the production of a supplementary unit of a good or service.

Average Variable Costs

The total variable costs of production divided by the quantity of output produced, representing the variable cost per unit of output.

Marginal Cost

The increase or decrease in the total cost that arises when the quantity produced is incremented by one unit.

Average Variable Cost

is the cost that varies with the level of output, calculated by dividing the total variable costs by the quantity of output produced.