If the Total Costs of Producing 1,500 Units of Output

question 24

Multiple Choice

If the total costs of producing 1,500 units of output is $15,000 and this output sold to consumers for a total of $16,500, then the firm would earn profits of

• A) $31,500.
• B) $16,500.
• C) $1,500.
• D) $15,000.

Grasp the significance of corporate responsibility in balancing profit, consumer satisfaction, and societal well-being.

Recognize the legal frameworks, including Sarbanes-Oxley Act, aimed at combating unethical practices in corporations.

Understand the concept and implications of whistle-blowing in the business context.

Recognize the importance of ethical corporate considerations beyond profit.

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Definitions:

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by supply and demand.

Profit

The financial gain realized when the revenue from selling goods or services exceeds the cost of production.

Marginal Cost

Incremental expenditure incurred by manufacturing an additional unit of a product or service.

Selling Price

The price at which a product or service is sold to customers.