Information Provides Buyers with Power When ________

question 156

Multiple Choice

Information provides buyers with power when ________.

• A) the focal industry is concentrated
• B) suppliers have switching costs
• C) the products are relatively inexpensive
• D) when products are highly regulated

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Definitions:

Agency Agreement

A legal contract creating a fiduciary relationship which empowers an agent to act on behalf of a principal in transactions.

Apparent Agency

A legal concept where a principal is liable for the acts of their agent, based on the appearance of authority the agent has been given, even if no actual authority was given.

Implied Agency

A form of agency relationship created by actions of the parties involved rather than a written agreement, suggesting one party can act on behalf of another.

Express Agency

An agency relationship created by an explicit written or oral agreement between the agent and the principal.