The Manager of OIL Corporation Is Considering Whether to Locate

question 34

Multiple Choice

The manager of OIL Corporation is considering whether to locate a retail gasoline station across the street from a small,independent retailer.OIL Corporation feels that its ethical obligation is to focus on maximizing profit for shareholders.The manager intuitively feels that opening this location will be good for shareholders and that this is a worthy goal for the corporation.The manager is operating at which level of ethical assessment?

• A) Level one
• B) Level two- value judgment
• C) Level two - moral standards
• D) Level three
• E) None of the answers.

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Definitions:

Total Revenue

It refers to the total receipts from sales of goods or services sold by a company during a particular period.

Purely Competitive Seller

Refers to a market participant in an industry structure where many sellers offer identical products, and no single seller can influence price or market conditions.

Demand (D)

A consumer's desire and willingness to pay a price for a specific good or service, holding all other factors constant.