When an Agent Does Not Inform the Third Party That

question 4

Multiple Choice

When an agent does not inform the third party that he or she is acting on behalf of another person, the unidentified principal is known as a(n) :

• A) undisclosed principal.
• B) unaware principal.
• C) unauthorized principal.
• D) distinct principal.

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Definitions:

Marginal Cost Curve

A graph that displays the cost of producing each additional unit, typically showing how marginal cost changes as production increases.

Average Total Cost (ATC)

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

Average Variable Cost (AVC)

The total variable costs of production (like labor and material costs) divided by the quantity of output produced, indicating the average variable expense per unit of output.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit of a good changes with different production levels.