Answer: The correct answer is False.
Explanation:
Business behavior will not determine the ethics of society. Businesses can't be responsible to change the moral and ethical behaviors of a single person or an entire world. Only a person can change their own behavior. A society in whole can only be changed by each person acting upon their own free will.
If a business is not ethical, then they need to change the way they work and do business and lead by example.
Answer:
The correct answer is letter "C": occurs when a market activity leads to a negative or a positive externality.
Explanation:
An Economic Externality is a cost or benefit paid or earned by a third party that does not have control over the factors that produced the cost or benefit. The third-party problem arises when whether negative or positive externalities affect individuals who are not involved in market activities.
Answer:
Sunk cost
Explanation:
-Incremental cost is the total cost of producing an additional unit.
-Sunk cost is a cost that has already been paid and that it is not possible to get it back.
-Out-of-pocket cost is a cost that requires a direct payment in the actual period.
-Opportunity cost is the cost of not receiving a benefit when you choose an alernative over another one.
-Period cost is a cost that is not associated with the production of goods.
According to this, the answer is that the $14 per unit is a sunk cost because the company has already spent that manufacturing the products and it is not able to recover that money.
