Even After an Agency Relationship Has Terminated, There Are Circum?stances

question 31

True/False

Even after an agency relationship has terminated, there are circum?stances under which a principal may be bound by his or her agent's act.

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Definitions:

Tacit Collusion

An unspoken, implicit agreement among competitors to avoid certain competitive behaviors, such as price undercutting, to stabilize the market and maintain higher prices.

Cartel

An association of independent companies or entities that agree to limit competition between themselves, often to control prices and production in a particular market.

Allocative Efficiency

A state of the economy in which the distribution of resources among different uses is optimal, reflecting consumer preferences and maximizing total societal welfare.

Productive Efficiency

A situation in which a goods or services are produced at the lowest possible cost, utilizing all available resources efficiently.