Use the Following to Answer Questions

question 79

Multiple Choice

Use the following to answer questions :
Scenario: Betty's Cookie Shop
Betty runs a cookie shop where she sells cookies for $1 each.She employs five people,each of whom worked a total of 500 hours last year;she paid them $10 per hour.Her costs of equipment and raw materials add up to $75 000.Her business ability is legendary,and other companies have offered to pay Betty $100 000 to come to work for them.She also knows she could sell her cookie shop for $150 000.The bank in town pays an annual interest rate of 3% on all funds deposited with it.
-(Scenario: Betty's Cookie Shop) Use Scenario: Betty's Cookie Shop.Betty is trying to decide at what point she should stop selling cookies,and she knows that she cannot change the price of a cookie.She should stop selling cookies if her:

• A) economic profit is positive.
• B) explicit and implicit costs are less than her revenues.
• C) implicit costs are greater than her accounting profits.
• D) economic profit is equal to her accounting profit.

Distinguish between ethical theories that focus on actions, consequences, or rights.

Analyze the impact of ethical theories on corporate responsibility and decision-making.

Identify the ethical implications of profit maximization and stakeholder theory in business.

Comprehend the role of critical thinking in ethical reasoning and decision-making.

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Definitions:

Compressed Regions

Areas where tissue, organs, or structures are pressed together or compacted, often leading to reduced function or pain.

Hertz

A unit of frequency equivalent to one cycle per second, used to measure the frequency of sound waves and electrical signals.

Decibels

A unit of measurement for sound intensity, symbolized as dB, representing the logarithmic comparison between two power levels.

Intensity

The magnitude or strength of a phenomenon or a quality, often used in contexts ranging from physics to emotional experiences.