A Business Firm Will Choose Which Outputs to Produce Based

question 11

Multiple Choice

A business firm will choose which outputs to produce based on:

• A) relative prices
• B) absolute prices
• C) utility maximization
• D) not enough information to answer

---

Definitions:

Apparent Authority

A situation where a person appears to have been given the power by a company or another person to act on their behalf, even if no actual authority was granted.

Disclosed Principal

A situation in a business arrangement where the identity of the principal is known to all parties involved in the transaction.

Ratifies

To officially approve or confirm an action, agreement, or decision, making it valid and legally binding.

Contractually Bound

Contractually Bound indicates that parties have agreed to specific terms and conditions outlined in a contract, obligating them to fulfill their respective parts of the agreement.