Question

Which of the following items is a possible example of myopic behavior?

a. Failure to promote deserving employees
b. Reducing expenditures on preventive maintenance
c. Cutting back on new product development
d. Buying cheaper, lower-quality materials so that the company does not exceed the materials purchases budget
e. All of these.

Answer 1

Market forces such as inclusive customer bases, labor shortages, and competitive wages can incentivize businesses to avoid discriminatory practices for the sake of profitability and market sustainability.

Step-by-step explanation:

Market forces can provide incentives for businesses to engage in less discriminatory behavior due to the potential impact on their profitability and sustainability in the market. Here are the scenarios where market forces might prompt a business to reconsider discriminatory practices:

• Inclusive customer base: A local flower delivery business may risk losing a significant portion of its clientele if the owner's bigotry is made overt. In regions with a diverse demographic, an inclusive approach to business is essential for maximizing market reach and profitability.
• Labor shortages: When an assembly line that historically hired only men struggles to find qualified workers, expanding the hiring pool to include women and other demographics can alleviate the shortage, contributing to business continuity and competitive advantage.
• Competitive wages: A home health care services firm that underpays Hispanic workers might face high turnover rates if these workers leave for better-paying jobs. To retain talent and maintain operational efficiency, it may be necessary to offer equitable wages across all employee groups, countering discriminatory wage practices.

Market competition thereby acts as a substantial incentive for businesses to discard discriminatory behaviors and practices in favor of more equitable and inclusive strategies.

Answer 2

Myopic behavior in business refers to short-sighted actions that favor immediate cost savings over long-term benefits, and the examples provided all represent such behavior.

The correct option is b.

Step-by-step explanation:

The student question appears to involve the concept of myopic behavior in a business context, which refers to short-sighted actions that a company might take that could potentially lead to harm in the long term.

The items listed in the question, such as failure to promote deserving employees, reducing expenditures on preventive maintenance, cutting back on new product development,

and buying cheaper, lower-quality materials to stay within the budget, are all examples of myopic behavior because they prioritize immediate cost savings over the potential long-term benefits of investing in these areas.