Answer to Question #224717 in Economics of Enterprise for Betty

Question

1.   Is it reasonable to expect firms to take actions that are in the public interest but are detrimental to stockholders? Is regulation always necessary and appropriate to induce firms to act in the public interest? Substantiate with real world examples

Answer 1

No it will not be reasonable to expect firms to act on the idea of public interest.

Yes this is when they've displayed a flagrant disregard of constitutional rights and safeguards of the people. A good example is violation of he nation's antitrust laws which prevents monopolies and makes it easier to use without authority the public goods on behalf of their own financial interests.