Fact Pattern 37-2 Kristin and Lindsey Are Partners in Mobile Devise, an Online

question 20

Multiple Choice

Fact Pattern 37-2
Kristin and Lindsey are partners in Mobile Devise, an online marketing firm.
-Refer to Fact Pattern 37-2. Lindsey dissociates from Mobile. Kristin signs a contract with Organic Olives, a food seller, apparently on Mobile's behalf. Organic Olives does not know of Lindsey's dissociation. The contract is binding on

• A) ​Kristin, Lindsey, and Mobile.
• B) ​Kristin only.
• C) ​Mobile only.
• D) ​Organic Olives only.

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Definitions:

Consumer Surplus

The discrepancy between the price consumers are inclined to pay for a product or service and the actual price paid.

Market Quantity

The total amount of goods or services available for purchase within a specific market.

Consumer Surplus

The divergence in total potential expenditure consumers are ready to make on a good or service against actual expenses incurred.

Welfare Economics

A branch of economics that focuses on the optimal allocation of resources and goods and aims to evaluate social welfare.