The Failure of Personal Ethics Among Such Companies as Enron

question 35

Multiple Choice

The failure of personal ethics among such companies as Enron and WorldCom led to the creation of the:

• A)Hepburn Act.
• B)Lloyd-LaFollette Act.
• C)Bayh-Dole Act.
• D)Landrum-Griffin Act.
• E)Sarbanes-Oxley Act.

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Definitions:

MR = MC Output

The optimal production level for a firm where marginal revenue (MR) equals marginal cost (MC), used to maximize profit.

Profit Maximizing

The strategy or method of adapting manufacturing and sales processes to secure the maximum achievable profit.

Firm Interest

The commercial or financial concerns and objectives of a business organization.

Socially Optimal

A condition or level of operation where social welfare is maximized, considering all costs and benefits to society.