An Agent Can Represent Two Principals in the Same Transaction

question 129

True/False

An agent can represent two principals in the same transaction, so long as neither is aware of the dual capacity.

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Definitions:

Standardized Product

Goods or services that are uniform in quality and performance, allowing them to be interchangeable.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and ease of entry and exit, leading to no single firm influencing the market price.

Many Buyers

A market condition where there are numerous consumers for a product, enhancing competition and potentially reducing prices.

Price Takers

Market participants who accept prevailing market prices and do not have the market power to influence those prices.