How Would the Duty of Care Be Determined for Persons

question 31

Essay

How would the duty of care be determined for persons who are not members of a professional association, but who hold themselves out as persons in possession of special expertise? Use an insurance agent as an example.

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Definitions:

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit from the market, and products that are similar enough to be considered close substitutes, leading to price competition and efficiency.

Linear Marginal Cost

A situation where the additional cost of producing one more unit of output is constant, regardless of the quantity produced.

Sunk Costs

Expenses that have already been incurred and cannot be recovered or refunded.

Fixed Costs

Expenses that do not change in proportion to the activity of a business, such as rent, salaries, and insurance.