Question: b. Read the sentences below and decide the function of each sentence by specifying which states a claim and which state s a support. Fill
b. Read the sentences below and decide the function of each sentence by specifying which states a claim and which statesa support. Fill your answers in the blank boxes.
Sentence | Function |
1. It is often assumed that firms are simply concerned to maximize profits: that they are not concerned with broader issues of social responsibility. |
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2. It is then argued, however, that competitive forces could result in society benefiting from the self-interested behaviours of firms: i.e. that profit maximization will lead to social efficiency under conditions of perfect competition and the absence of cost. |
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3. But, as we have seen, in the real world, markets are not perfect and there is often cost. |
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4. Many forms of market failure can be attributed directly to business practices that could not be classified as socially responsible: advertising campaigns that seek to misinform or in some way deceive the consumer; monopoly producers exploiting their monopoly positionsthrough charging excessively high prices; the conscious decision to ignore water and air pollution limits; knowing that the chances of being caught are slim. |
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