Which of the Following Is Necessary to Create an Agency

question 93

Multiple Choice

Which of the following is necessary to create an agency relationship?

• A)consideration
• B)an agent with contractual capacity
• C)a ratification by the principal
• D)none of the above

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Definitions:

Deadweight Loss

An economic inefficiency arising when there's a failure to attain the free market equilibrium for any product or service.

Monopolist

A market participant that is the sole seller of a product or service, having significant control over its price.

AC

Average Cost; the total cost of production divided by the number of units produced, indicating the cost per unit.

Producer Surplus

The difference between the amount producers are willing to supply goods for and the actual amount received by them when sold.