An Individual Firm Has Little Incentive to Voluntarily Internalize Any

question 168

Multiple Choice

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.

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Definitions:

Incidence

A measure of the frequency of new cases of a disease or disorder during a specified period of time.

Alzheimer's Disease

A progressive neurodegenerative disorder characterized by memory loss, cognitive decline, and behavioral changes, being the most common cause of dementia.

Memory

The cognitive function that allows an individual to store, retain, and recall information from past experiences.

Cognitive Functioning

Mental processes that include thinking, learning, memory, problem-solving, and decision-making.