Which of the Following Is Not a Sign of an Ethical

question 14

Multiple Choice

Which of the following is not a sign of an ethical collapse within an organization, according to Marianne Jennings, author of The Seven Signs of Ethical Collapse: How to Spot Moral Meltdowns in Companies ?

• A)Pressure to meet financial goals
• B)Hubris
• C)Nepotism, favoritism, and hiring sycophants
• D)An open and candid organizational culture
• E)A weak board of directors

Analyze the conditions under which a firm should continue production or shut down in the short run.

Understand and apply the marginal decision rule in the context of economic profit maximization.

Analyze the effect of changes in market price on a firm’s marginal revenue, output level, and economic profit.

Distinguish between economic profit, total revenue, and total cost.

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Definitions:

Profit

The financial gain accrued from a business activity when total revenues exceed total expenses.

Total Revenue

The total income generated from the sale of goods or services before any expenses are subtracted.

Long Run

An economic period in which all inputs, including capital, can be adjusted, allowing firms to fully adapt to market changes.

Output

The total amount of goods and services produced by an economy or a production process over a certain period of time.