Where There Is No Contract of Agency Between the Principal

question 105

True/False

Where there is no contract of agency between the principal and the agent, the actions of that agent cannot bind the principal.

---

Definitions:

Output Effect

The output effect is the change in total revenue resulting from selling additional units of a product, considering the impact on price due to supply and demand.

Elastic Demand

A condition where the quantity demanded of a good or service is highly responsive to changes in its price.

Output Effect

The impact on total revenue when a firm changes its output level, considering demand elasticity.

Substitution Effect

The change in consumption patterns due to a relative change in prices leading consumers to substitute one product for another.