In the Loyalty and Fraud Reporting Case, Ethan Lester Pressured

question 52

Multiple Choice

In the Loyalty and Fraud Reporting case, Ethan Lester pressured his friend Vick Jensen to:

• A) Misappropriate funds from the company
• B) Cover up Ethan's fraud
• C) Be silent and not report Ethan's fraud to the audit committee
• D) Give an unmodified audit report

---

Definitions:

ATC

Average Total Cost; this refers to the total cost per unit of output incurred when producing goods or services.

Long-Run Equilibrium

A state in market conditions where all firms in a perfectly competitive industry earn zero economic profit, leading to the optimal distribution of resources in that industry.

MR

Stands for Marginal Revenue, which is the additional revenue gained from selling one more unit of a product or service.

MC

Short for Marginal Cost, it refers to the increase in total cost that arises from producing one additional unit of a good or service.