Heat Wave, Inc., makes portable heaters. To pay its liability for injuries to consumers harmed by defective heaters, Heat Wave can pass the costs on to

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Heat Wave, Inc. can pass the costs on to consumers in the form of higher prices. This is because the cost of the liability will ultimately impact the company's profitability, and in order to maintain profitability, Heat Wave, Inc. may choose to increase the price of its heaters. Passing the cost on to suppliers through reverse kickbacks or the government through direct payments is not a common or practical solution. Market share liability may apply in some cases, but it does not address the issue of Heat Wave, Inc. being held directly responsible for the harm caused by its defective heaters.