(D) is incorrect because the economists never say that the community's judgment is irrelevant to assessing the morality, rather the morality is irrelevant to determining the penalties (lines 17-19). The purpose of the law in their view is to affect corporate earnings - use cost/ benefit to deter wrongdoing - rather than assess the morality, meaning that the economists may as well agree that the community's judgment is relevant to assessing the morality, but this assessment should not translate into legal judgment/ penalties.
