If Other Persons Within an Organisation Approve of an Activity

question 24

True/False

If other persons within an organisation approve of an activity and the activity is legal but not customary in the industry, the activity is probably both ethical and socially responsible.

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Definitions:

Factor Price

The payment received by a factor of production, for example, wages for labor, rent for land, or interest for capital.

Production Function

A mathematical representation of the relationship between inputs (such as labor and capital) and the maximum output that can be produced with those inputs.

Profit-maximizing

The process or strategy implemented by firms to determine the price and output level that returns the highest profit.

Weak Axiom

Often associated with the Weak Axiom of Revealed Preference (WARP), which is a condition used in consumer choice theory to describe consistent consumer behavior.