The ___________ States That an Ethical Decision Should Maximize Benefits

question 52

Multiple Choice

The ___________ states that an ethical decision should maximize benefits to society and minimize harms.

• A) principle of value
• B) theory of cost-benefit analysis
• C) principle of efficacy
• D) principle of utility

---

Definitions:

Continue to Produce

The decision by a business to maintain production activities, often evaluated in the context of profitability and market demand.

MR = MC

The economic principle where marginal revenue equals marginal cost; it is optimal for firms pursuing profit maximization.

Long-Run Equilibrium

A state in which all factors of production and costs are variable, and firms make normal profits in a competitive market.

P = ATC

A condition where price equals average total cost, indicating that firms are covering all their costs but not making economic profit.