There Is Little Incentive for an Individual Firm to Voluntarily

question 17

Multiple Choice

There is little incentive for an individual firm to voluntarily internalize its negative externalities because to do so would:

• A)cause it to forgo the diseconomies of agglomeration.
• B)shift its cost curves downward.
• C)put it at a competitive disadvantage compared to rival producers.
• D)make it subject to emission or effluent fees.

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Definitions:

Happiness Concern

The issue or focus on understanding what factors contribute to human happiness and well-being.

Human Flourishing

A concept in moral philosophy that relates to living well and realizing one's full potential through ethical and virtuous actions.

Golden Mean

Aristotle's concept of finding the desirable middle between two extremes, one of excess and the other of deficiency.

Theory of Moderation

A philosophical principle suggesting that moderation in all things is the key to a good life, avoiding extremes in behavior, beliefs, and actions.