As a Result of the Bhopal Incident, in Which a Toxic

question 123

Multiple Choice

As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, leading officials at Union Carbide have dedicated themselves to operating their business ethically. Ways in which the company can encourage ethical behavior include all of the following except

• A) formalizing a corporate code of ethics.
• B) encouraging whistle-blowing.
• C) holding ethics training sessions.
• D) requiring that ethical behavior be profitable.
• E) promoting open decision making.

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Definitions:

TC Curve

A graphical representation showing the total cost of producing different quantities of a good or service.

TVC Curve

A graphical representation showing the relationship between a firm's total variable costs and its output level.

TFC

stands for Total Fixed Costs, which are the costs that do not vary with the level of production or sales, such as rent or salaries.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, showing the cost of each unit's share of the fixed expenses.