The Manager Is Faced with the Dilemma of Doing What

question 121

Multiple Choice

The manager is faced with the dilemma of doing what is beneficial for the firm in the short run and doing what is right and beneficial for the firm and society in the long run.To address this conflict, the firm's:

• A)quarterly profit statement needs to be ethically evaluated.
• B)long-term goals must be stated in general terms so that they do not interfere with its short-term goals.
• C)management and employees must think about the needs of society ahead of the needs of the company.
• D)long-term goals must be aligned with its short-term goals.
• E)competitive advantage must be passed on to the competing firm.

Recognize the principles of consumer equilibrium and how to maximize utility subject to a budget constraint.

Understand that identical economic circumstances do not guarantee identical consumption preferences or choices among individuals.

Learn the implications of the marginal rate of substitution in decision-making processes involving mutually exclusive choices under uncertainty.

Comprehend the concept of diminishing marginal utility and its graphical representation as convex indifference curves.

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Definitions:

Advertising Media

The communication platforms used to promote and market products or services to target consumers.

Direct To Consumer

A business model where companies sell products directly to consumers, cutting out any intermediaries such as retailers or wholesalers.

Face-To-Face

Personal encounters or meetings involving direct eye contact and communication in the same space.

Industrial Distributor

A company that buys products directly from manufacturers and sells them to businesses or retail consumers.