An Agent Is Under a Duty to Obey: ______

question 25

Multiple Choice

An agent is under a duty to obey: ______.

• A) all instruction given by the third party.
• B) all lawful instructions given by the principal.
• C) all instructions given by the principal.
• D) none of these, since "obedience" is not an obligation of the agent.

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Definitions:

Profits

The financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes involved in sustaining the activity.

Industry Supply Curve

A graphical representation showing the relationship between the price of a good and the total output of the industry at various prices.

Input Price

The cost associated with procuring the resources needed for production, such as raw materials, labor, and machinery.

MC = MR

The condition where marginal cost equals marginal revenue, often used as a profit maximization rule for firms.