Actions That Benefit Shareholders but Harm the Other Stakeholders Would

question 31

Multiple Choice

Actions that benefit shareholders but harm the other stakeholders would be viewed as ________ from the efficiency perspective but ________ from the social responsibility perspective.

• A) managerially responsible; socially irresponsible
• B) socially responsible; managerially irresponsible
• C) socially irresponsible; managerially responsible
• D) managerially irresponsible; socially responsible

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Definitions:

Long Run

A period in economics sufficient for all markets to adjust, including production levels, prices, and resource allocation, often contrasted with the short run where some factors are fixed.

Efficient Output

The level of production at which a firm or economy is producing at minimum average total cost, optimizing resource use.

Demand Curve

a graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

MR Curve

In economics, the Marginal Revenue curve shows how the revenue generated from selling one additional unit of a good or service changes with quantity sold.