A Policy Is Approved That Requires a Company near a Large

question 22

Multiple Choice

A policy is approved that requires a company near a large city to keep its smokestack pollution to new lower levels,costing the company $2 million in additional equipment which will last at least 10 years) and $100,000 a year in additional labor.Lowering the air pollutants in the region is expected to save $4 million in medical expenses in the region over the next 10 years.Which of the following can be inferred from this information?

• A)The company appears to lose money because of the policy,but it may decide to pass the costs along to consumers.
• B)The company will save approximately $1 million over the next 10 years by implementing the new equipment.
• C)The cost of the new equipment outweighs the benefit of its implementation.
• D)Taxpayers will save approximately $1 million if the company implements the new equipment.

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Definitions:

Mental Incapacity

A condition where an individual is unable to understand the nature and consequences of their actions, often affecting their ability to enter into legal agreements or make informed decisions.

Lease Agreement

A contract between a lessor and lessee that grants the lessee rights to use a property owned by the lessor for a specified period in return for payment.

Oil Exploration

The process of searching for oil deposits, often involving geological surveys and drilling.

Restrictive Covenant

A clause in a deed or lease that limits what the owner of the property can do with it, often to ensure the use aligns with certain criteria or standards.