Rohm and Haas Were Considering

question 55

Multiple Choice

Rohm and Haas were considering:

• A) putting arsenic in its plastics to prevent it from being resold to dentists.
• B) dyeing all of its women's underwear pink so that fewer men would buy it.
• C) charging the Pentagon 500 times the going market price for Styrofoam cups.
• D) declaring bankruptcy to sell its granite countertops below the government mandated minimum price.

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Definitions:

Producer Surplus

The difference between the amount that producers are willing to sell a good for and the actual amount received by them after selling it.

Price Floor

A government-imposed minimum price charged for a product, above which market transactions may legally occur.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, naturally established in a free market.

Organizational Culture

The set of shared values, beliefs, and norms that influence the behavior and attitudes of individuals within an organization.