Which of the Following Is the Difference Between Maximize Profits

question 1

Multiple Choice

Which of the following is the difference between maximize profits theory and moral minimum theory?

• A) Maximize profits theory calls for actions to make profits at all cost, while moral minimum theory calls for actions to make profit without harming others.
• B) Maximize profits theory calls for actions with all stakeholder interest, while moral minimum theory calls for actions to solve other social problems.
• C) Maximize profits theory calls for actions to make profit without harming others, while moral minimum theory calls for actions to solve other social problems.
• D) Maximize profits theory calls for actions with all stakeholder interest, while moral minimum theory calls for actions to make profits at all cost.

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Definitions:

Efficiency Wages

Wages that are deliberately set above the market equilibrium level by employers to increase productivity and efficiency among employees.

Below-equilibrium

A situation where the quantity demanded exceeds the quantity supplied at a given price.

Principal-agent Problem

A dilemma in which one party (the agent) is expected to act in the best interest of another party (the principal) but may have the incentive to act in their own interest instead.

Shirking

The behavior of avoiding or evading work responsibilities, often in employment settings.