Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's

question 18

True/False

Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. Ted may ratify the contract made by Phil, if he wishes to do so, provided that he could have made the agreement himself at the time that the agreement was made by Phil.

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Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the free market equilibrium for a good or a service is not achieved, leading to a loss of total societal welfare.

Economic Profits

Profits exceeding the opportunity costs of a firm's resources, indicating it is surpassing the next best alternative.

Monopolistic Competition

A market structure characterized by many firms selling products that are similar but not identical, allowing for slight control over prices.

Product Variety

Product variety refers to the assortment or range of different products or services that a company offers to cater to diverse customer preferences.