​The Economic Model of Social Responsibility Holds That Society Will

question 211

Multiple Choice

​The economic model of social responsibility holds that society will benefit most when business is left alone to produce and market profitable products that society needs.This economic model is based on the notion that

• A) ​social responsibility is someone else's job.
• B) ​social responsibility is a privilege and duty of every business.
• C) ​social responsibility is a burden but should nonetheless be undertaken.
• D) ​social responsibility brings great benefits to the business that undertakes to act on it.

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Definitions:

Downward-Sloping

Characteristic of a curve on a graph indicating a decrease in one variable as another variable increases, often seen in demand curves.

Cournot Duopolists

Firms in a duopoly market structure who decide on their output level assuming the output of the competitor is fixed, leading to a strategic interdependence.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Inverse Demand

A representation of demand that shows the price as a function of quantity demanded, contrary to the typical demand curve.