An Ethical Dilemma Arises

question 98

Multiple Choice

An ethical dilemma arises:

• A) when a person is faced with a situation that requires a decision about the most appropriate behaviour when there is a range of options available.
• B) when a person is faced with a situation that requires a decision about the most appropriate behaviour, but they have very few options available.
• C) when a person is faced with a situation that requires a decision about the least appropriate behaviour, but the available options require a trade- off of interests or ideals.
• D) when a person is faced with a situation that requires a decision about the most appropriate behaviour, but the available options require a trade- off of interests or ideals.

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Definitions:

Economic Profits

The financial gain made in a transaction after accounting for both explicit and implicit costs.

Average Total Cost

The total cost of production divided by the quantity of output produced, representing the average cost per unit of output.

MC = MR

Stands for the economic principle where Marginal Cost (MC) equals Marginal Revenue (MR), a condition for profit maximization in firms, indicating the optimal level of production.

Profit-maximizing Level

The point at which a firm achieves the highest possible profit, balancing the cost of production against revenue from sales.