If an Agent Has No Authority but Nevertheless Contracts with a Third

question 71

True/False

If an agent has no authority but nevertheless contracts with a third party, the principal cannot normally be held liable on the contract.​

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Definitions:

Maximize Utility

The process of allocating resources to obtain the highest possible satisfaction or utility.

Consumer Equilibrium

A state in which consumers are maximizing their satisfaction, with no incentive to alter their allocation of expenses across goods or services.

Marginal Utility

The change in total satisfaction or utility that a person receives from consuming one additional unit of a good or service.

Budget Line

Represents all the combinations of two goods that a consumer can afford given their prices and the consumer's income.