Explain Why It Is Important to Encourage Whistle Blowing in a Firm

question 110

Essay

Explain why it is important to encourage whistle blowing in a firm.

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Definitions:

Average Total Cost

The total costs of production divided by the total output, indicating the average cost per unit of output.

Total Cost

The combined total of expenses involved in making goods or services, including costs that do not change and those that do.

Variable Input

Any resource used in production whose quantity can be changed in the short term to increase or decrease output, such as labor or raw materials.

Marginal Cost

The expenditure incurred from creating one more unit of a product or service.