Scenario 10-4 the Demand Curve for Fire Extinguishers Slopes Downward and the and the Supply

question 73

Essay

Scenario 10-4
The demand curve for fire extinguishers slopes downward and the supply curve for fire extinguishers slopes upward. The production of the 500^th fire extinguisher entails the following:
• a private cost of $10;
• an external cost of $0;
• a private value of $9;
• an external benefit of $3.
-Refer to Scenario 10-4. In order to maximize the total benefit of fire extinguishers to society as a whole, should the number of fire extinguishers produced be less than, equal to, or greater than 500? Explain.

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Definitions:

Corporate Social Responsibility

A business approach that contributes to sustainable development by delivering economic, social, and environmental benefits for all stakeholders.

Triple Bottom Line

Triple bottom line is a framework or theory that broadens a business's focus on the financial bottom line to include social and environmental considerations.

Stakeholders

Individuals or groups that have an interest or concern in an organization's activities and outcomes.

Counterproductive Work Behaviors

Actions by employees that harm or intend to harm organizations and stakeholders, including theft, sabotage, and workplace aggression.