Questions: The CEO of a multinational retail corporation has decided to raise the minimum wage for its U.S. employees to three times the current federal minimum wage. The CEO explains that the company needs to provide its employees a living wage, regardless of what the law requires. According to Milton Friedman, did the corporation fulfill its duty? Yes, because employees will now be able to afford to purchase more of the company's products. Yes, because the corporation is going beyond what the government requires it to do, in order to advance the public good. No, because the wage hike will drastically increase the corporation's liabilities and likely harm its stock price. No, because the increase would not be good for the economy.

The answer is: No, because the wage hike will drastically increase the corporation's liabilities and likely harm its stock price.

While this option suggests a potential benefit of increased wages, it does not align with Milton Friedman's perspective on corporate responsibility. Friedman argued that the primary responsibility of a corporation is to its shareholders, not to increase consumer purchasing power.

Milton Friedman famously argued that the social responsibility of a business is to increase its profits. From his perspective, actions taken to advance the public good at the expense of shareholder value do not fulfill a corporation's duty.

This option aligns with Friedman's view that a corporation's primary duty is to its shareholders. If the wage increase significantly raises costs and negatively impacts the stock price, it would not fulfill the corporation's duty to maximize shareholder value.

While this option suggests a broader economic impact, Friedman's focus was more on the corporation's responsibility to its shareholders rather than the overall economy. Therefore, this option is less directly related to his views on corporate duty.