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Summing Up Social Responsibility (Scenario)

question 112

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Summing Up Social Responsibility (Scenario)
Maher, director of research and development for National Products Company, has learned that a new material has been developed in his department that appears as though it will work in several products already being manufactured by National Products Company. He has discussed the potential savings with his two assistants, Sawsan and Mansur, and the vice president of product development, Raed. Sawsan has stated her opposition to the use of the new product because its durability and flame retardance have not completed testing and have not been certified by the company's third-party testing laboratory. Mansur argues that the initial tests that their R&D department completed indicate minimal problems with both durability and flame retardance. Raed states that in several meetings he has recently attended, the company president had repeatedly emphasized the need to increase earnings per share. Raed tells Maher that a decision has to be made within the week about the new products use by National Products Company.
-If Maher resists his impulse to okay the use of the product because of the need for increased earnings per share, though the product has not been certified, he probably ________.

Definitions:

Market Price

The current price at which an asset or service can be bought or sold, determined by the supply and demand dynamics in the market.

Downward-Sloping Demand Curves

A graphical representation indicating that as the price of a good or service decreases, the quantity demanded increases, and vice versa.

Perfect Competition

A market structure characterized by a large number of small firms, identical products, and free entry and exit from the market.

Identical Goods

Products that are indistinguishable from each other in the eyes of the consumer, often associated with perfect competition markets.