Parrot Co. operates an online store where it sells the products of Biscuit Co. Under the contract between Parrot and Biscuit, Parrot buys the product of Biscuit after Parrot receives an order from an online shopper. Biscuit undertakes to deliver the goods directly to the customer. The customer pays through the website of Parrot at a marked-up price. Parrot then remits the payment to Biscuit at the contracted price, which is lower. Parrot does not keep any inventory of Biscuit products. The arrangement between Parrot and Biscuit implies a principal agent relationship whereby Parrot is an agent of Biscuit. IS IT TRUE OR FALSE ?
Parrot Co. operates an online store where it sells the products of Biscuit Co. Under the contract between Parrot and Biscuit, Parrot buys the product of Biscuit after Parrot receives an order from an online shopper. Biscuit undertakes to deliver the goods directly to the customer. The customer pays through the website of Parrot at a marked-up price. Parrot then remits the payment to Biscuit at the contracted price, which is lower. Parrot does not keep any inventory of Biscuit products. The arrangement between Parrot and Biscuit implies a principal agent relationship whereby Parrot is an agent of Biscuit. IS IT TRUE OR FALSE ?
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter10: Prices, Output, And Strategy: Pure And Monopolistic Competition
Section: Chapter Questions
Problem 1E
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Parrot Co. operates an online store where it sells the products of Biscuit Co. Under the contract between Parrot and Biscuit, Parrot buys the product of Biscuit after Parrot receives an order from an online shopper. Biscuit undertakes to deliver the goods directly to the customer. The customer pays through the website of Parrot at a marked-up price. Parrot then remits the payment to Biscuit at the contracted price, which is lower. Parrot does not keep any inventory of Biscuit products. The arrangement between Parrot and Biscuit implies a principal agent relationship whereby Parrot is an agent of Biscuit.
IS IT TRUE OR FALSE ?
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