Lina, an employee of Manual Labor Industries (MLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Lina accepts $50,000 from MLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. Newt's misdiagnosis is, in terms of its impact on Lina's agreement with MLI:a. a mutual mistake of fact. b. a unilateral mistake of fact. c. fraud. d. puffery.

In the short-run, marginal costs are equal to the change in variable costs as output changes. ( mc = change in variable cost / change in quantity) assume that capital is fixed in the short-run. (a) start with the equation for marginal cost and derive an equation that relates marginal cost of production to the cost and productivity of labor. (b) draw a standard looking short-run marginal cost curve and use the equation you derived to explain its shape.