You Have Identified What Seems to Be the Theoretically Correct

question 4

Multiple Choice

You have identified what seems to be the theoretically correct, or rational, policy to deal with a situation. Even though your staff agrees, chances are this policy will not be enacted, or not in its entirety. Why?

• A) Administrators lack the discretion to adopt rational policies.
• B) Bureaucrats, as humans, behave irrationally.
• C) Administrative rules hinder consideration of all options.
• D) The policy will result in too much job loss.
• E) The policy is politically unacceptable.

Recognize the legal obligations and duties between agents and principals.

Comprehend the requirements and implications of specific types of agency relationships, such as gratuitous agency.

Identify the tort liabilities arising from an agent’s actions and the principal's responsibilities in such cases.

Understand the concept of authority in agency relationships, including apparent, express, and implied authority.

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Definitions:

Marginal Product

The additional output gained by adding one more unit of a specific input, holding all other inputs constant.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a resource, such as labor or capital.

Variable Input

An input whose quantity can be changed in the short term by a firm to adjust the level of output.

Marginal Revenue Product

The additional revenue generated from employing one more unit of a factor of production, like labor or capital.