What Happens When Society Requires That Firms Reduce Pollution

question 148

Multiple Choice

What happens when society requires that firms reduce pollution?

• A) There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers.
• B) There is no tradeoff, since everyone benefits from reduced pollution.
• C) There is no tradeoff for society as a whole because the cost of reducing pollution falls only on the firms affected by the requirements.
• D) There is a tradeoff only if some firms are forced to close.

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