Jan Was an Authorized Agent for an Airline

question 15

Multiple Choice

Jan was an authorized agent for an airline. Due to shoddy work on her part, the airline withdrew the authorization for Jan to act as an agent. Nonetheless, she sold tickets to a customer. The airlines refused to honor the tickets. Who is liable to the customer for the money paid for the tickets?

• A) The airline
• B) Jan
• C) The Department of Transportation
• D) No one is liable to the customer in this circumstance

---

Definitions:

Profit Maximizing Level

The point at which a company or business can achieve the highest possible profit given its products, services, costs, and market conditions.

Marginal Revenue Curve

A graphical representation depicting the change in total revenue that results from selling one additional unit of a product or service.

Business License

A legal authorization granted by government agencies that allows individuals or companies to conduct business within the government's geographical jurisdiction.

Profit Maximizing

The process of adjusting the production and sale of goods and services to achieve the highest possible profit.