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Mr Ho Talked with Mr

question 20

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Mr. Ho talked with Mr. Tarr, who ran a business called Roscali Roofing. Mr. Ho agreed to pay Tarr $250 for the repair of his roof. In time, Gene Fix, Tarr's employee, came to Mr. Ho's and worked on the roof. Fix used the wrong material in the repairs, which made all his effort worthless; during the next rain the roof leaked as before. Which of the following is true?


Definitions:

Total Revenue

The total amount of money received by a company from sales of its products or services before any expenses are subtracted.

Total Output

The total quantity of goods or services produced by a firm or economy.

Perfect Competition

A market structure characterized by a large number of small firms, a homogenous product, perfect information, and easy entry and exit, leading to firms being price takers.

Marginal Decision Rule

A principle stating that an action should be taken if, and only if, the marginal benefit of the action exceeds its marginal cost.

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