The Key to Pollution Abatement Lies in Forcing Polluters to Externalize

question 139

True/False

The key to pollution abatement lies in forcing polluters to externalize their pollution costs.

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Definitions:

Long Run

A time period in which all factors of production and costs are variable, allowing for all inputs to be adjusted.

Profit

The financial gain obtained when the revenue from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Total Revenue

The gross revenue of a company, being the entire sum of income from goods or services sold, prior to the deduction of any costs.

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.