Rodeo Ranch's Agent Slim Is Authorized to Draw Checks on Rodeo

question 17

Multiple Choice

Rodeo Ranch's agent Slim is authorized to draw checks on Rodeo Ranch's account in Town Bank. Upper Range Corporation is a Rodeo Ranch supplier. Slim writes a check "pay to the order of Upper Range [signed] Slim," indorses the check in Upper Range's name, and deposits it in his account in Verity Bank. If Verity Bank collects payment, the ultimate party most likely to suffer the loss is

• A) no one.
• B) Rodeo Ranch.
• C) Town Bank.
• D) Upper Range.

---

Definitions:

Decreasing-cost Industry

An industry where average costs of production decrease as the industry grows, often due to economies of scale.

Demand Curve

An economic representation that illustrates the quantity of a good that consumers are willing and able to buy at various prices, typically downward sloping from left to right.

Productive Efficiency

A state where goods are produced at the lowest possible cost, utilizing resources effectively without waste.

Average Total Cost

The total cost of production (fixed and variable costs combined) divided by the number of units produced, showing the cost per unit of output.