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Jason, who is very knowledgeable regarding computers, agrees to purchase computers for Nick's business. Jason is retained for that purpose only, he is paid a set rate for the job, and Nick exercised no control over the manner in which Jason did his work. Jason purchased computers from ABC Computers without any mention of Nick. The computers worked well and were not defective in any way. Unfortunately, Nick did not pay ABC Computers on a timely basis. Jason, therefore, paid ABC Computers out of his own pocket because he wanted to be able to do business with ABC in the future and also because his name was on the invoice. Jason asked Nick for reimbursement, but Nick refused. Nick claimed that if Jason had only waited, ABC Computer might have agreed to take less.
Which of the following likely represents Jason's status in regards to his employment with Nick?
a. He had a special status called employee-contractor, a term used to represent a contractor who is neither an employee nor an independent contractor.
b. He was an employee.
c. He was an independent contractor.
d. He was an implied contractor.
e. He was an express contractor.
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Under patent protection, a firm has a monopoly in its production. Market demand is estimated to be P = 100 – .2Q. The firm’s economic costs are given by ATC = MC = $60 per unit. Determine the firm’s optimal output, price and economic profit. Compute ..
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