Author Question: An individual firm has little incentive to voluntarily internalize any external costs it was ... (Read 111 times)

fasfsadfdsfa · **on:** Jun 30, 2018

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.

Question 2

Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. The opportunity costs of producing 1 ton of apples for Alpha and Omega, respectively, are:
a. 0.25 tons of oranges; 0.5 tons of oranges.
b. 9 tons of oranges; 4 tons of oranges.
c. 2 tons of oranges; 4 tons of oranges.
d. 4 tons of oranges; 2 tons of oranges.