Question 1 Jagmohan Singh, hotel owner, decides that to control costs he cannot offer employees a raise next year. However, employees are not told that the hotel's manager, Jone Raja, has been offered a 15% increase in salary if the manager can convince the employees that the no-pay-raise policy is justified. The manager has agreed to do this and accept his raise.
Discuss the ethics of this situation.
Question 2 Explain why you think it sometimes makes sense to sell below total cost.