Managers Cannot Impose Ethical Behavior by Force, but They Can

question 13

True/False

Managers cannot impose ethical behavior by force, but they can develop a culture that supports ethical behavior.

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Definitions:

Variable Cost

Refers to expenses that change in proportion to the production output or activity level of a company.

Fixed Cost

This is a cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Diminishing Returns

An economic principle stating that adding an additional factor of production results in smaller increases in output after a certain point.

Marginal Output

The additional quantity of output that is produced by using one more unit of a given input.