Corporate Social Responsibility Through an Economic Lens" by Forest L. Reinhardt, Robert N. Stavins, and Richard H. K. Vietor (Review of Environmental Economics and Policy, 2008.

1. What are two reasons that the authors give for why CSR may not be socially beneficial (on net)? For each, provide an example (that the authors do not use) OR a counterexample. (4 points) 2. What are two reasons for why CSR may be socially beneficial (on net)? You can use reasons that the authors give and/or that you think are applicable. For each, give an example. (4 points) 3. Given the authors' definition of CSR, can firms operating in the following market structures engage in CSR in the long-run? Why or why not? (8 points) a. Perfectly competitive market b. Oligopoly c. Monopolistic competition, due to a small market size d. Monopolistic competition, due to product differentiation 4. Draw a "firm picture" of an oligopolist's residual demand curve, marginal revenue curve, marginal cost curve, and average cost curve. (The firm is competing in a market with a homogenous product.) Identify the quantity it will produce, the product price, and the firm's profit. (7 points) a. Show how the oligopolist undertaking CSR will change this picture, according to the authors' definition of CSR. (2 points) b. Show how the oligopolist undertaking "strategic" CSR as described in your text will change this picture. (3 points)