Any Time an Activity Causes Managers or Consumers to Feel

question 153

True/False

Any time an activity causes managers or consumers to feel manipulated or cheated, a marketing ethics issue exists, regardless of the legality of that activity.

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Definitions:

Auction

A public sale in which goods or services are sold to the highest bidder.

Total Surplus

The combined total of consumer and producer surplus, indicating the overall net gain to society from producing and consuming goods and services.

Producer Surplus

The difference between what producers are willing to sell a product for and the price they actually receive.

Equilibrium Price

The selling price where the quantity of goods on offer is equal to the quantity consumers want to buy.