Herman Writes a Note to Gerard, the Manager of the Neighborhood

question 59

Multiple Choice

Herman writes a note to Gerard, the manager of the neighborhood grocery store, asking him to allow Bernard, Herman's restaurant manager, to charge $500 worth of groceries to the restaurant's account at the grocery store. This is an example of which of the following?

• A) Nontrading partnership
• B) Apparent authority
• C) Implied authority
• D) Expressed authority
• E) Actual authority

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Definitions:

Natural Monopoly

A market condition where a single firm can supply the entire market at a lower cost than any combination of two or more firms due to economies of scale.

Social Regulation

Government-imposed regulations aimed at improving health, safety, and the welfare of the public, covering issues like pollution and workplace safety.

Antitrust Policy

Regulations and laws designed to promote competition and prevent monopolies, protecting consumers from predatory business practices.

Laissez-Faire Perspective

An economic philosophy of minimal government interference in the affairs of businesses and markets.