G202 EXAM 2 EXAMINATION TEST 2026
TESTED QUESTIONS WITH FULL SOLUTION
GRADED A+
◉ Below is a table of information on a local monopolist's Sales
Quantity, Price, and Total Cost.
Quantity PriceTotal Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's socially efficient quantity (Qe)?
A) 3.
B) 2.
C) 5.
,D) 4. Answer: C)5
◉ Who did Unilever bring in to help the company? Answer: Paul
Polman
◉ Unilever's Logo/Values Answer: Over half of Unilever's values are
sustainability focused
Sun, Bee, DNA, Hand, Hair, Palm Tree, Flower, Swirl, Spoon, Chili
Pepper, Bowl, Fish, Wave, Packaging, Clothes, Transformation, Heart,
Particles, Plant, Virtuous cycle, Lips, Ice cream, Spark, Dove
◉ Unilever's Stakeholder Hierarchy Answer: Consumers—Society—
Employees—Shareholders
◉ Why was the Unilever's stakeholder hierarchy created? Answer:
Was envisioned to improve business performance by signaling to
key stakeholders that societal issues are integrated in Unilever's
core business strategy
- There is a growing consumer trend toward improved health and
protected environment
-Employee motivation and empowerment around solving society's
biggest challenges leads to more innovation
-Government regulations and NGO activist campaigns are focusing
more on mitigating global social threats
,-Trust and transparency are important, especially for socially
responsible investors (SRI's) that are growing in importance in
capital allocations
◉ Stakeholder capitalism Answer: Still driven by maximizing profit
but showing it a very different way by putting consumers first.
◉ The Sustainable Living Plan (USLP) Answer: Allows Unilever to
differentiate its products in markets that are usually seen as more
homogenous
-Creates loyal customers, from those who value sustainability
-Loyal customers, have more inelastic demand, giving Unilever
market power in pricing
◉ The USLP Initially Increased Profits - Customer Loyalty Answer:
Higher prices and more sales
-Increased operating margins from 13.6% to 14.5%
-Market share gains have outpaced market growth
◉ The USLP Initially Increased Profits - Employee Loyalty Answer:
Improved recruiting and retention and increased productivity
-World's most in-demand employers: 3rd behind on Google and
Apple, ahead of Microsoft, Facebook, Amazon
, ◉ The USLP Initially Increased Profits - Investor Loyalty Answer:
More resources for R&D and expansion
-18% increase in shareholder value
-Listed on the Dow Jones Sustainability Index and GlobeScan
Sustainable Leaders
◉ Profit Maximization Unilever Answer: -Differentiation and
customer loyalty
-Pf and Qf
-Found where MR=MC
◉ Social Efficiency Unilever Answer: -Competition and
homogeneous goods
-Pe and Qe
-Found where D=MC
◉ Inefficiency Answer: When firms with market power under
produce relative to the socially efficient output (Qf<Qe), society
loses out on a net benefit
-But firms won't go to Qe as units are not profitable past Qf
◉ USLP Had Mixed Social Impact Results - Sustainability Targets
Answer: -In 2013, 50 defined sustainability targets, only five were
regarded as off plan
TESTED QUESTIONS WITH FULL SOLUTION
GRADED A+
◉ Below is a table of information on a local monopolist's Sales
Quantity, Price, and Total Cost.
Quantity PriceTotal Cost
0 45 0
1 40 20
2 35 40
3 30 60
4 25 80
5 20 100
What is the monopolist's socially efficient quantity (Qe)?
A) 3.
B) 2.
C) 5.
,D) 4. Answer: C)5
◉ Who did Unilever bring in to help the company? Answer: Paul
Polman
◉ Unilever's Logo/Values Answer: Over half of Unilever's values are
sustainability focused
Sun, Bee, DNA, Hand, Hair, Palm Tree, Flower, Swirl, Spoon, Chili
Pepper, Bowl, Fish, Wave, Packaging, Clothes, Transformation, Heart,
Particles, Plant, Virtuous cycle, Lips, Ice cream, Spark, Dove
◉ Unilever's Stakeholder Hierarchy Answer: Consumers—Society—
Employees—Shareholders
◉ Why was the Unilever's stakeholder hierarchy created? Answer:
Was envisioned to improve business performance by signaling to
key stakeholders that societal issues are integrated in Unilever's
core business strategy
- There is a growing consumer trend toward improved health and
protected environment
-Employee motivation and empowerment around solving society's
biggest challenges leads to more innovation
-Government regulations and NGO activist campaigns are focusing
more on mitigating global social threats
,-Trust and transparency are important, especially for socially
responsible investors (SRI's) that are growing in importance in
capital allocations
◉ Stakeholder capitalism Answer: Still driven by maximizing profit
but showing it a very different way by putting consumers first.
◉ The Sustainable Living Plan (USLP) Answer: Allows Unilever to
differentiate its products in markets that are usually seen as more
homogenous
-Creates loyal customers, from those who value sustainability
-Loyal customers, have more inelastic demand, giving Unilever
market power in pricing
◉ The USLP Initially Increased Profits - Customer Loyalty Answer:
Higher prices and more sales
-Increased operating margins from 13.6% to 14.5%
-Market share gains have outpaced market growth
◉ The USLP Initially Increased Profits - Employee Loyalty Answer:
Improved recruiting and retention and increased productivity
-World's most in-demand employers: 3rd behind on Google and
Apple, ahead of Microsoft, Facebook, Amazon
, ◉ The USLP Initially Increased Profits - Investor Loyalty Answer:
More resources for R&D and expansion
-18% increase in shareholder value
-Listed on the Dow Jones Sustainability Index and GlobeScan
Sustainable Leaders
◉ Profit Maximization Unilever Answer: -Differentiation and
customer loyalty
-Pf and Qf
-Found where MR=MC
◉ Social Efficiency Unilever Answer: -Competition and
homogeneous goods
-Pe and Qe
-Found where D=MC
◉ Inefficiency Answer: When firms with market power under
produce relative to the socially efficient output (Qf<Qe), society
loses out on a net benefit
-But firms won't go to Qe as units are not profitable past Qf
◉ USLP Had Mixed Social Impact Results - Sustainability Targets
Answer: -In 2013, 50 defined sustainability targets, only five were
regarded as off plan
