Jay and Jim Spears Own a Lawn Irrigation System Business

question 222

Multiple Choice

Jay and Jim Spears own a lawn irrigation system business. They perform installations and maintenance of these systems. Several of their customers are golf courses, but they serve a large group of residential customers as well. When they started the business ten years ago, they made a pact to always operate within the legal limits of the law, but lately, the competition is eating them alive. Local competitors have hired illegal immigrants to perform the manual labor. They do not pay taxes on these employees - they just pay them in cash at the end of the week. Employment taxes are a burden for small businesses. Jay and Jim do not want to hire illegal workers. There's a risk if you permit an illegal worker to drive a truck; or, if he/she has an accident on the job. You have just studied business ethics in your class. You inform this partnership that:

• A) Taxes only need to be paid for the owners.
• B) They are not only taking a chance that a bigger problem may occur, they are indirectly setting the ethics code for their firm.
• C) Small businesses may not be able to worry about ethics codes. These types of documents are better suited for big business.
• D) It is not unethical to try to better the lives of others. Everyone needs jobs.

Understand the concepts of imperfect competition and how it affects the labor market.

Identify and explain the relationship between marginal product and marginal resource cost.

Analyze the impact of competitive and non-competitive markets on firms' product pricing and labor hiring decisions.

Calculate marginal product and marginal resource cost based on given data.

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Definitions:

In Loco Parentis

A legal doctrine that allows institutions or individuals to assume parental responsibilities and make decisions on behalf of a minor.

Domestic Reform

The process of implementing significant changes in a country's policies, laws, and social systems in order to address internal issues and improve the welfare of its citizens.

Assassination

A targeted killing of a public figure, usually for political reasons.

Containment Doctrine

A Cold War policy aimed at preventing the spread of communism by the United States.