The Profit-Maximizing Combination of Resources in a Perfectly Competitive Situation

question 287

Multiple Choice

The profit-maximizing combination of resources in a perfectly competitive situation occurs at the point at which

• A) MRP of labor = price of labor (wage rate).
• B) MRP of land = price of land (rental rate per unit).
• C) MRP of capital = price of capital (cost per unit of service).
• D) All of the above are correct.

Appreciate the complexities of social responsibility within the context of global and local actions by corporations.

Differentiate between the three concepts of social responsibility concerning their specific focus areas and constituencies.

Assess the ethical obligations of companies in relation to profit maximization and societal benefits.

Understand the consequences and management of agency problems in corporate governance.