Business
The company will make an income of $148,000+$12,000=$160,000 to break even in one year.
How much revenue will the business have to earn to break even in economic terms?
The break-even point in economics term considers the opportunity cost as follows $148,000+$12,000+$35,000=$195,000
Suppose Sarah buys the building. Now how much will the business have to earn to break-even in economic terms
The business will now earn $148,000+$35,000=$183,000
What might be the objective of a museum? What might be the objective of a firm? Do they have the same objective? Explain
The goal of a museum is to break even such that the money the institution makes can pay the workers and maintain the place. The aim of the firm, on the other hand, is to make a profit such that the generated revenue needs to be more than the incurred expenses.
What is the difference between unethical and unlawful behavior? Please provide an example of both responses in your discussion
Unethical behavior is a set of actions that fall outside what the community, whether business community or society as a whole, considers as improper. Such moral codes stem from norms and culture of the community. For example, it is unethical to charge two dollars lower than the market price just to get more customers flocking your store.
Conversely, unlawful behavior involves trespassing the rules and regulation, policies and constitutional law. An illegal practice would lead to the lawsuit before a court of justice. For instance, it is illegal to sell smuggled goods.
In your opinion, how much time should a consumer spend on shopping for lower prices (you may want to apply the marginal analysis)
The consumer should spend just enough time shopping for lower prices until the marginal gain of the shopping experience is equivalent to the additional expense incurred during the search. The marginal benefit is the savings resulting from lower prices. The marginal cost is the forgone earnings for the time of the search.
Business has only one social responsibility to make profits (as long as it stays within the legal and moral rules of the game established by society) few trends could so thoroughly undermine the very foundations of society as the acceptance by corporate officials of a social responsibility other than to make as much money for the stockholders as possible. Explain agree or disagree with such a statement.
The essential fact is that the economy of a country largely depends on the ability of the production sector. Therefore, it is vital for producers (business owners) to be in a position of sustenance, above the break economic break-even point, for the economy to stay healthy. Therefore, the only one social responsibility of business is to make a profit because if otherwise, the society would crumble.
References
Anheier, H. K. ( 2014). Nonprofit Organizations: Theory, Management, Policy. Abingdon-on-Thames: Routledge.
Baumol, W., & Blinder, A. ( 2008). Economics: Principles and Policy. Boston, Massachusetts, United States: Cengage Learning.
Friedman, M., & Becker, G. S. ( 2007). Milton Friedman on Economics: Selected Papers.Chicago: University of Chicago Press.
Pillai, K. (2011). The essence of a Manager. Berlin, Germany: Springer Science & Business Media.
Sreedharan, E., & Wakhlu, B. (2010). Restoring Values: Keys to Integrity, Ethical Behaviour, and Good Governance. New Delhi: SAGE Publications India.
