While Companies Have Learned That "Doing Good" and "Doing Well

question 105

Multiple Choice

While companies have learned that "doing good" and "doing well" go hand in hand, companies have also learned that to do good, they must first do well in terms of ________.

• A) successful advertising campaigns
• B) hiring of strong employees
• C) designing of attractive products
• D) profitable business operations
• E) ethical, as well as legal, decision making

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Definitions:

Optimal Consumption

The mix of goods and services purchased that maximizes the utility or satisfaction of a consumer given their budget constraint.

Marginal Utility

The additional pleasure a consumer experiences from acquiring another unit of a product or service.

Marginal Utility Per Dollar

The additional utility gained from spending one more dollar on a good or service.

Diminishing Marginal Utility

The principle stating that as a person consumes more of a good or service, the satisfaction gained from each additional unit decreases.