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They ensure that would-be climate entrepreneurs have less incentive to invent. A drug company must incur a large fixed cost to do the basic research, so it has strong incentives to predict what the demand for the drug will be if its research succeeds. So they have no incentive to purchase them.
Ideally, with a lower marginal rate, companies would have more incentive to bring it home, but you need to have some kind of program in place as well. But a jobs strategy has to be based on aggregatedemand throughout the economy. taxation, and so that also needs to be confronted. trade policy. Where do they sit now?
Big firms face different incentives, for a few reasons. Externalities pose problems for markets, since neither buyer nor seller have any incentive to deal with the costs. The Ford story doesn’t add up , if you assume that Ford believed that his move alone was enough to raise overall demand for cars.
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