No firm can take cost-increasing,socially responsible actions in a competitive marketplace and expect to continue to compete,even if those cost-increasing actions yield significant benefits to the firm.

Question

Quizplus · Accepted Answer

This statement is not necessarily true. While it may be challenging for a firm to compete if it takes cost-increasing socially responsible actions, it is not always the case. Some consumers prioritize socially responsible practices and are willing to pay extra for products or services that align with their values. Additionally, in the long run, socially responsible actions may actually benefit a company's reputation and customer loyalty, leading to increased profits. Therefore, it is possible for a firm to engage in socially responsible actions and still remain competitive.

No Firm Can Take Cost-Increasing,socially Responsible Actions in a Competitive