An Electrician Working in a Small Town Is the Only

question 39

Multiple Choice

An electrician working in a small town is the only electrician within a 100-mile radius. He knows that people who have medical equipment at home have the highest need for power, so he charges them double to fix problems with their electricity, compared with the average customer. The community is angry about this choice. This business practice is most likely:

• A) Ethical because owners should focus only on the impact of decisions on the firm.
• B) Ethical because it is not illegal for a company to set its prices based on maximizing profits.
• C) Unethical because businesses operate in a community and communities have expectations for behavior of individuals, groups, and businesses.
• D) Unethical because it is against the law for a company to charge one customer more than another.
• E) Unethical because there is only one morally proper thing to do in any situation.

---

Definitions:

Monthly Interest Rate

The interest rate expressed as a monthly percentage, reflecting the cost of borrowing money or the earnings from lending money on a monthly basis.

Monthly Interest Rate

The interest rate charged or earned, expressed on a monthly basis, typically used for loans or investments.