Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's

question 10

True/False

Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. If Ted had died the day before the contract negotiated by Phil was made, Chris would be entitled to sue Ted's estate to enforce the agreement.

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Definitions:

Fixed Input

A resource or factor of production whose quantity does not change with the level of output in the short run.

MRC

Marginal Resource Cost, the cost of utilizing one additional unit of a resource or factor of production.

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of a resource, commonly applied in economics.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.