MGMT 1040 Study Guide - Final Guide: Pareto Efficiency, Oligopoly, Allocative Efficiency
Document Summary
Mgmt 1040 hosmer text - chapter 1 & 2. Moral problem financial performance of a firm is in conflict with the social performance. Individual determinants of moral standards 4 personal aspects of a person that result in subjective standards of moral behaviour different for each person. Subjective standards of moral behavior different between people depends on their personal goals, norms, beliefs and values, which in turn are dependent upon their cultural and religious traditions as well as economic and social situations. Pareto optimality net balance of benefits over costs for the full society, given that the values of those benefits and costs are determined by all of the people within that full society. Greatest possible economic benefits at the least possible economic cost more is better than less. 3 conditions: all markets must be competitive, all customers and suppliers must be informed, all costs must be included.
