Which of the Following Is Not a Breach of an Agent's

question 32

Multiple Choice

Which of the following is not a breach of an agent's duty of obedience?

• A) Entering into an unauthorized contract for which his or her principal is liable.
• B) Refusing to follow the principal/employer's instruction to misrepresent the quality of a competitor's goods to a potential customer.
• C) Improperly delegating her authority.
• D) Committing a tort for which the principal is liable.

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Definitions:

Creative Destruction

A concept in economics which suggests that new innovations destroy old industries and create new economic structures.

Decreasing-Cost Industry

An industry where the unit cost of production decreases as the industry's output increases, often due to economies of scale.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the number of units produced.

Long-Run Adjustments

Refers to changes that firms in an industry make in response to economic opportunities or constraints, involving adjustments in production capacity or resource utilization over time.