When Mr=Mc Ethical Efficiencies In Valuing And Pricing Essay Example
Primeaux and Stieber discuss the ethical principles involved in economic profit maximization, examining how value is determined and what ethical implications arise when goods and services are valued based on economic profit maximization. Their discussion moves from production to distribution, focusing on external pricing and consumer demand. Profit maximization in economics involves determining the optimal price and output level that will yield the highest profit. There are different approaches to achieving this, including the total revenue – total cost method and the marginal revenue – marginal cost method. In a perfectly competitive market, total profit is maximized when marginal revenue equals marginal cost. If total revenue and total cost figures are unavailable, the marginal profit equation can be used by subtracting marginal cost from marginal revenue for each unit sold.
When marginal revenue is higher than marginal cost, the marginal
...profit becomes positive. Conversely, when marginal revenue is lower than marginal cost, the marginal profit becomes negative. However, when there is a balance between marginal revenue and marginal cost, the marginal profit equals zero. As the total profit increases with a positive marginal profit and decreases with a negative one, the maximum point is where the marginal profit equals zero, which is where the marginal cost and marginal revenue are equal. The objective of this research study was to categorize international marketing ethical problems that business managers encounter in their operations.
The study centered on ten primary ethical issues derived from earlier exploratory research. The survey revealed that "gifts/favours/entertainment" is the ethical problem most commonly mentioned by managers, while "large-scale bribery" is considered the most significant. Nevertheless, there are notable variations regarding the rankings and average value
of frequency and importance ratings for the remaining ethical issues.
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