Having Worked for Many of the Firms in the Petroleum

question 12

Multiple Choice

Having worked for many of the firms in the petroleum industry,you know that the price elasticity of demand for a representative firm is about −1.25.An industry publication recently reported that the Rothschild index for the petroleum industry is estimated to be 0.88.Based on this information,you know that the price elasticity of demand for the firm you currently work for in the petroleum industry is:

• A) −1.42.
• B) −1.10.
• C) 0.704.
• D) 1.10.

Identify different views on the role of businesses in society, from classical economic to socioeconomic models.

Comprehend the strategies businesses can adopt toward social responsibility, from reaction to proaction.

Understand the concept of corporate philanthropy and its relation to corporate social responsibility.

Recognize the role of ethical considerations within the realm of business decisions and strategies.

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Definitions:

Sales Increase

The rise in the amount of products or services sold by a company, usually compared to a previous period.

Contribution Margin

The amount by which sales revenue exceeds variable costs, representing the contribution towards covering fixed costs and generating profit.

Direct Material Costs

The expenditures for materials that are directly involved in the manufacturing process of a product.

Fixed Costs

Operating expenses that remain constant regardless of the business activity level, such as insurance or lease payments.