Ritchie's Robots Decided to Continue Operations at One Plant While

question 162

Multiple Choice

Ritchie's Robots decided to continue operations at one plant while shutting down another. The decision was justified on the basis of what was best for the total corporation. This is an example of the

• A) utilitarian approach.
• B) individualism approach.
• C) moral-justice approach.
• D) justice approach.
• E) illegal approach.

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Definitions:

Inferior Good

A type of good for which demand decreases as the consumer's income rises, reversing the typical behavior observed with normal goods.

Long-run Equilibrium

A state in which economic forces such as supply and demand are balanced and in the context of production, firms are operating at an efficient scale.

Decreasing-cost Industry

An industry in which production costs fall as the industry expands, often due to economies of scale or technological improvements.

Long-run Equilibrium Prices

The price at which the quantity supplied equals the quantity demanded, stabilized over a longer period, factoring in all market adjustments and resource mobility.