An Employee in Charge of Collecting Tickets at the Entrance

question 17

Multiple Choice

An employee in charge of collecting tickets at the entrance of a movie theatre lets her friends enter the theatre without paying for tickets. She thinks it is fine to do so because the employees at the popcorn bar give free popcorn to their friends. This type of rationalization is based on

• A) denial of responsibility.
• B) denial of the victim.
• C) everyone else is doing it.
• D) appeal to higher loyalties.
• E) entitlement.

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Definitions:

Fixed Input

A resource in the production process whose quantity cannot easily be changed in the short term, such as buildings and machinery.

Marginal Cost

The increase in cost caused by producing one additional unit of a good or service.

Average Total Cost

The total cost of production divided by the quantity of output produced, encompassing both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, measuring the cost per unit of output.