Within the context of the efficiency perspective of social responsibility,externalities involve ________.
A) random consequences
B) marketplace interactions
C) unintended consequences
D) indirect acts of social responsibility

Question

Quizplus · Accepted Answer

Externalities involve unintended consequences that occur as a result of economic activities or transactions that affect parties who are not directly involved in the production or consumption of goods or services. These externalities may be positive or negative, and they can have both economic and social impacts. From an efficiency perspective, social responsibility requires that externalities be internalized so that the true costs and benefits of production and consumption are reflected in market prices. This helps to ensure that resources are allocated efficiently and that optimal outcomes are achieved for both producers and consumers.

Within the Context of the Efficiency Perspective of Social Responsibility,externalities