Nobody downloaded yet

Key Issues Analysis When MRMC Ethical efficiencies in valuing and pricing - Essay Example

Comments (0) Cite this document
Summary
The key issues in the article are inefficient use of scarce resources, incorrect pricing, and incorrect payments to the factors of productions. An example of inefficient use of scarce resources is the establishment of used-car lots in an Amish community. An example of incorrect pricing and incorrect payments to the factors of productions is the steel industry in the 1980s…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.6% of users find it useful
Key Issues Analysis When MRMC Ethical efficiencies in valuing and pricing
Read TextPreview

Extract of sample "Key Issues Analysis When MRMC Ethical efficiencies in valuing and pricing"

Download file to see previous pages The opportunity costs are the goods and services that consumers want and value. Incorrect pricing has ethical implications. To charge too small a price for a product in relation to its production costs will affect revenue negatively, upset the delicate balances required for profit maximization, and lead to disastrous repercussions, perhaps even to the demise of the company. On the other hand, to charge too much for the product, more than people are willing to pay, will result in the same kinds of consequences. Incorrect payments to the factors of productions is unethical because it would also result in opportunity costs for the company. The opportunity costs include the foregone profits of producing goods and services that consumers want and also the opportunity costs arising from the greater community in which the firm exists - from the immediacy of geographical location to philosophical, religious, legal, sociological, and cultural implications of the greater world. Paid less than the value of his/her marginal product, the employee, a scarce human resource, would leave the company. Paid more, the company's opportunity costs would result in fewer resources from which to produce the goods and services the community wants.
One disposition is to put aside individual ethics and adopt only corporate ethics, that is, profit maximization or opportunity costs minimization, producing goods and services that consumers want and value. Price is a measure of how much do consumers want and value the goods and services produced. The payment to all of the factors of production will be equal to the total revenues from the price. The total dollars from the production of goods and services is apportioned among the various factors of production according to the contribution of that factor of production's contribution, called its marginal physical product (MPP) in economics terms. The sum of the MPP of the factors of production equals what is produced. With respect to value, the MPP of each factor of production is sold in the market place for that price the consumer is willing to pay for it. When that price is multiplied by the MPP of each factor of production, the dollars we receive are called the value of the marginal physical product (VMP).
Another disposition is to attempt to influence the value that consumers place on goods and services produced by the firm. This could be achieved through advertisements. Value could be added to the factors of production so that their VMP could be increased. For example, labor could be trained and creativity could be encouraged. Also, cheaper factors of production could be used. For example, rather than producing steel in the USA, the firms in the steel industry could have based their production in Venezuela, Canada, and Australia where the cost of production is lower. Nike is a good example of an organization that has adopted this disposition. Its operation is based in China, where the cost of production is low. It tries to influence consumer demand for its goods through advertisements. The value of entrepreneurship is increased by outsourcing all functions in which it has no competitive advantage and focusing instead on marketing.
The first disposition is recommended. This is because it essentially means production at the level where marginal cost (MC) is equal to marginal revenue (MR) when profit is maximized. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Key Issues Analysis When MRMC Ethical efficiencies in valuing and Essay”, n.d.)
Retrieved from https://studentshare.org/miscellaneous/1528098-key-issues-analysis-when-mrmc-ethical-efficiencies-in-valuing-and-pricing
(Key Issues Analysis When MRMC Ethical Efficiencies in Valuing and Essay)
https://studentshare.org/miscellaneous/1528098-key-issues-analysis-when-mrmc-ethical-efficiencies-in-valuing-and-pricing.
“Key Issues Analysis When MRMC Ethical Efficiencies in Valuing and Essay”, n.d. https://studentshare.org/miscellaneous/1528098-key-issues-analysis-when-mrmc-ethical-efficiencies-in-valuing-and-pricing.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Key Issues Analysis When MRMC Ethical efficiencies in valuing and pricing

Case Study Analysis: Ethical Issues

...? Case Study AnalysisEthical Issues (Add (Add (Add Case Study AnalysisEthical Issues The given case study addresses compelling rights of a minor patient, his parents, and physicians. In this case context, Tyrell Dueck (the 14 year old patient) and his parents refuses the medically prescribed leg amputation on the ground of their religious beliefs. As the US Constitution allows citizens to freely exercise their religious beliefs, the government does not restrict people from refusing medication on the ground of religious perceptions. Earlier, the US government did not allow minor patients to refuse medication as they were seemed...
3 Pages(750 words)Essay

Key Technology Trends That Raise Ethical Issues

...Key Technology Trends that raise Ethical Issues Table of Contents Table of Contents 1 Introduction 2 Information Technology and Ethics 2 Key Technology Trends and Ethical Issues 4 Abstract This paper discusses the technology trends that raises ethical issues. Without a doubt, the use of information technology is aimed at improving the efficiency and performance of a business, but illegal or ineffective use of information technology causes a wide variety of ethical and security concerns. This paper presents an overview of...
4 Pages(1000 words)Research Paper

Economic and Ethical Issues of Pricing

...be because every company wants to gain and retain competitive edge at a price level. Pricing cannot be done in isolation considering that there are number of economic issues in the business environment that firms must take into consideration before setting up prices in order to remain relevant (Devan, 2011). Key economic issues that may affect a business’s pricing strategy include but not limited to level of competition, recession, demand, cost of services, elasticity and government policy. The level of competition will definitely affect the organization’s preferred pricing strategy (Martins, 2010). The...
4 Pages(1000 words)Essay

Ethical Issues

...of America, there are core values the PR professionals need to adhere, including honesty, independence, loyalty, advocacy, expertise, and fairness (PRSSA 1). Thus, violations of these set of ethics will make the situation unethical. This paper will discuss conflict of interest and astroturfing as ethical issues in public relations. Conflict of Interest and Astroturfing Conflict of interest happens when a PR professional has another interest, which comes into strife with another responsibility. For example, a PR company accepts two competing oil companies. Due to conflict of interest, PR agency cannot equally provide quality service to the two rival...
6 Pages(1500 words)Essay

Asset Pricing Issues

...Asset Pricing Issues This paper discusses main developments in asset pricing in the last twenty-five years, and some important issues that remain challenges for the future. Three Main Developments Campbell (2000) cites three main developments in asset pricing research since 1979: (1) our empirical data is richer, (2) we have more detailed models, and (3) we have a better understanding of risk and its effects on investor behaviour. First, research studies conducted during the period have turned up abundant data resources on interest rates, aggregate stock prices, cross-sectional patterns in stock returns, and other statistics such as...
4 Pages(1000 words)Assignment

Ethical Issues when Marketing with Children

...on them. The group has asserted that no psychological principles should be used when marketing to children. They are also recommending that there should be some sort of strategy to protect the young ones from exploitation though the use of psychological ploys. (Beder, 1998) The basic framework which steers marketing ethics revolves around three main issues. These are; values stakeholders processes Marketing ethics that are done on a value inclined framework are those one that involve the analysis of the kind of value that the marketing idea creates. So advertisements may instil in their target...
8 Pages(2000 words)Essay

Key issues to consider when designing for people with disabilities

...dissemination that promotes wider usage with better understanding of the technical environment. Rapid globalization and universal values are yet other major factors which necessitates the design and development of platform free softwares that does not bind the people within the parameters of specific computer and operating system when they are at different places and may have to use different system. Conclusion One can therefore, conclude that while designing computer software system, key issues that have significant impact on the overall development of persons with disability, play a vital role in achieving the aims and objectives of the system development....
4 Pages(1000 words)Essay

Ethical Issues

...Ethical Issues The parenting Programs in US Prison Systems aim to assist male prisoners to be responsible towards their children. Besides, single parented children face innumerable number of problems in their childhood. The fathers’ role in the character development of children is noteworthy. There is high chance for a child to face problems from his/her friends, at school and in the society. The seclusion felt by a child can be reduced by incorporating different types of parenting Programs in prison systems. The Parenting Programs in US Prison Systems play an important role to reduce the distance between prisoners and their children. Thesis statement: An investigation into the Parenting Programs in US...
6 Pages(1500 words)Essay

Ethical issues

...Ethical Issues Ethical issues arise when professional requirements in counselling (mandatory of conduct) get compromised by the circumstances that a case presents to the counsellor. A review of the case in prior preparations should reveal if anything is at stake by adoption of a particular path of action. When it is not within the counsellor’s professional jurisdiction, the counsellor looks for interventional assistance elsewhere (Sommers and Sommers, 2004). From this particular client’s case, there are two main presenting challenges touching on ethical issues. On one hand, there is accountability, while...
3 Pages(750 words)Assignment

Key Issues

...Key Issues in Project Management Introduction Project management is an important process in the achievement of the major goals and objectives set in the mission and vision statement of an organisation. Project managers, in the course of their management ensure that the major goals and objectives of an organisation are subdivided into smaller and manageable projects that can be used to achieve the overall goals (Patel, 17). It is the effective management and success of these micro projects that the overall goals and objectives of an organisation are met. For the success of these projects, it is important that effective planning be put into consideration to ensure that the right people are selected. These...
2 Pages(500 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Key Issues Analysis When MRMC Ethical efficiencies in valuing and pricing for FREE!

Contact Us