Which of the Following Behaviors of a Firm Can Be

question 1

Multiple Choice

Which of the following behaviors of a firm can be called unethical?

• A) setting up operations abroad
• B) manufacturing luxury consumer goods
• C) tolerating sweatshop conditions
• D) failing to meet shareholders' expectations with regard to annual profit

---

Definitions:

Production Costs

The costs associated with producing a product or providing a service, which encompass labor, materials, and overhead expenses.

Marginal Cost

The extra expense resulting from the production of a single additional product or service unit.

Fixed Cost

Fixed costs are business expenses that remain unchanged regardless of the level of production or sales, such as rent, salaries, and insurance premiums.

Output

The cumulative sum of products and services generated by an economy.