Temptations and Pressures to Act Unethically Are Such That Small

question 25

Multiple Choice

Temptations and pressures to act unethically are such that small firms are

• A) less vulnerable than large firms.
• B) more vulnerable than large firms.
• C) as vulnerable as large firms.
• D) not subject to the temptations and pressures facing large firms.

---

Definitions:

Competitive Equilibrium

A state in a market where supply equals demand, with price acting as the balancing factor, and all economic agents are optimizing their outcomes.

Pareto Optimum

An economic state where resources are allocated in a manner that precludes the possibility of bettering one's situation without causing harm to another.

Desert Island

An uninhabited or deserted island, often depicted in literature and movies as a remote, isolated place.

Competitive Equilibrium

A market state where supply equals demand, and no economic agents have the incentive to change their behavior.