Daniel Has Worked as a Computer Programmer and Senior Officer

question 48

True/False

Daniel has worked as a computer programmer and senior officer of Litem Systems Inc for several years.He has built up a close relationship with a number of Litem clients.One of them asks Daniel if he can do some programming work on the side.It is the same kind of work that Daniel does for clients of Litem.The client would hire and pay Daniel directly.Daniel would do the work on nights and weekends.Daniel is interested, but he cannot take the work because it would be a breach of his fiduciary duty and, if he does take it, he could be forced to pay over all of his profits to Litem.

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Definitions:

Short-Run Equilibrium

A condition in a market or economy where all forces are balanced, but only temporarily; prices and output may change until a long-run equilibrium is achieved.

Long-Run Equilibrium

A condition where an economy or market achieves a stable state after adjustments, where supply equals demand over an extended period.

Pure Competition

A market structure characterized by a large number of sellers and buyers, free entry and exit, and a product that is homogeneous across producers.

P = MC

An economic condition where price equals marginal cost, indicating optimal resource allocation in perfectly competitive markets.