government incentives help to reduce the externalities

You seem to think that two companies selling product A will rather sell 50 for $10 per unit profit than 100 for $9 per unit profit because it's easier.

I mean, it's a view, sure.

> You seem to think that two companies selling product A will rather sell 50 for $10 per unit profit than 100 for $9 per unit profit because it's easier.

If the numbers are closer, then that's exactly what happens.

Would you rather sell 50 units for $19 per unit or 100 for $10 per unit? Option 1 gives you way less overhead and headache with cheap-o customers.

It's not my view, though. I already said what I think is more likely to happen.