Which of the Following Statements Is Inconsistent with Milton Friedman's

question 5

Multiple Choice

Which of the following statements is inconsistent with Milton Friedman's argument regarding the responsibility of a firm?

• A) The only social responsibility of business is to make profits.
• B) Profit maximization is the primary purpose of business.
• C) Free and open competition is beneficial to business.
• D) Labour leaders' only responsibility is to serve the interests of their unions.
• E) All of the answers are consistent with his position.

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Definitions:

Markup

refers to the amount added to the cost price of goods to cover overhead and profit.

Machine-Hours

A measure of production volume based on the total hours machines are run in the manufacturing process, often used to allocate overhead costs.

Departmental Predetermined Rates

The estimated overhead rates calculated for specific departments within a company to allocate costs appropriately.

Manufacturing Overhead

All indirect factory-related costs incurred during the production process, excluding direct materials and direct labor.