Which of the Following Would Not Terminate an Agency by Operation

question 40

Multiple Choice

Which of the following would not terminate an agency by operation of law?

• A) A real estate agent loses his license.
• B) A principal hires another agent with similar duties.
• C) The principal is declared bankrupt.
• D) A lightning bolt kills the principal.

Differentiate between the concepts of opportunity cost, cost of production, and producer surplus.

Understand the concept of equilibrium price within market structures.

Analyze the impact of different pricing strategies on total surplus.

Evaluate the effects of shifts in supply and demand on producer and consumer surplus.

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Definitions:

Private Market

A private market is a part of the financial market in which investments are negotiated directly between parties, without public market listing.

Externalities

Unintended outcomes from business transactions impacting external groups, not included in the product or service pricing.

Coase Theorem

A principle that asserts that when trade in an externality is possible and there are no transaction costs, bargaining will lead to an efficient outcome regardless of the initial allocation of property.

Government Intervention

The involvement of the government in the market, aiming to alter the allocation of resources and distribution of goods and services.