An individual firm has little incentive to voluntarily internalize any external costs it was creating because:
a. it would shift its cost curves downward
b. it would put it at a competitive disadvantage compared to its rivals.
c. it would have to increase output to make up for the added costs.
d. they do not care at all about other people.
b
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In the above figure, if the firm is in monopolistic competition, its price will be
A) $1. B) $2. C) $3. D) $4.
A corporation’s income is taxed
A. immediately after it is deposited in the bank. B. only before it is distributed to its owners. C. only after it is distributed to owners. D. both before and after it is distributed to owners.
Economic rent is the minimum payment necessary to induce any of the factor to be supplied
a. True b. False Indicate whether the statement is true or false
If AD and AS increase at exactly the same rate, the result will be
A. demand-side inflation. B. supply-side inflation. C. falling prices. D. stable prices.