Which of the Following Statements Is Correct

question 62

Multiple Choice

Which of the following statements is correct?

• A) The ability of firms to engage in socially beneficial projects that involve voluntary costs is constrained by competition and the need of firms to attract capital at low cost.
• B) The actions that maximize a firm's stock price are inconsistent with maximizing social welfare.
• C) The concepts of social responsibility and ethical responsibility on the part of corporations are completely different and neither is relevant in maximizing stock price.
• D) In a competitive market,if a group of firms do not spend resources making social welfare improvements,but another group does,in general,this will not affect the second group's ability to attract capital.
• E) If government did not mandate socially responsible corporate actions,such as those relating to product safety and fair hiring practices,most firms in competitive markets would still pursue such policies voluntarily.

Understand the definition and risks of binge drinking.

Recognize the socio-demographic variables affecting alcoholism rates.

Acknowledge the effects of alcohol and its impact on health and societal issues.

Distinguish between different types of alcohol-induced disorders and their symptoms.

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Definitions:

Cournot Duopolists

Firms in a duopoly market structure, where two companies dominate, that decide on their output level assuming the other's output as given, under Cournot competition.

Demand Curve

Illustrates the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at each price level.

Total Costs

The combined total of fixed and variable costs involved in the manufacturing of goods or services.

Daily Profit

The financial gain a business makes in a single day, calculated by subtracting total expenses from total revenue for that day.