Ashley Would Like to Propose to the Board of Directors

question 34

True/False

Ashley would like to propose to the board of directors of Mountain Corporation that it distribute eight percent of its pre-tax yearly income to provide housing to homeless veterans.To Milton Friedman,Ashley's proposal would be considered unethical,because it violates the purpose for which the corporation was established.

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Definitions:

Profit-maximizing

This is an economic process where a firm determines the price and output level that returns the greatest profit.

Real Wages

Income from labor, corrected for inflation to reflect the real buying capability.

Nominal Wages

Wages paid to labor in current currency terms, without adjustment for inflation.