An Agency May Be Created by Ratification When the Principal

question 4

True/False

An agency may be created by ratification when the principal accepts the benefits derived from the agent acting on his or her behalf.

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Definitions:

Rationality

The quality of being based on or in accordance with reason or logic, often used in economics as a principle that individuals aim to maximize utility.

Simultaneous-Move Game

A strategic interaction where all players make their decisions or moves at the same time without knowledge of the other players' choices.

Low Price

The situation or strategy where the cost of a good or service is set below the average market price to attract consumers or gain market share.

Prisoners Dilemma

A paradox in decision analysis in which two individuals acting in their own self-interest pursue a course of action that does not result in the ideal outcome for either party.