Why are externalities a necessary consideration when conducting business, especially for large corporations?

Question

Quizplus · Accepted Answer

Externalities are significant because the actions of large firms can impact other firms and the broader community, which may not always align with the national interest. This consideration is crucial for understanding the broader economic and social impacts of business decisions. Options A and B are not universally true; externalities do not always directly cost money in a way that affects a firm's bottom line, and not accounting for externalities is not specifically against tax laws in Canada.

Why Are Externalities a Necessary Consideration When Conducting Business, Especially