If Pollution Coming from Factories Is Bad, Then Why Would

question 142

Multiple Choice

If pollution coming from factories is bad, then why would the socially optimal level of pollution not be zero?

• A) because there are significant social costs of achieving zero pollution
• B) because there are significant social benefits from attaining zero pollution
• C) because the factories are privately owned in a market system
• D) because there are zero benefits from zero pollution

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Definitions:

Par Value

A nominal value of a security, such as a bond or stock, which is set by the issuing company and does not necessarily reflect its market value.

Corporate Form

A legal structure for organizations that treats the business as a separate entity from its owners, providing limited liability protection.

Business Organization

A legally recognized entity established to conduct commercial activities, ranging from sole proprietorships to corporations.

Advantage

The condition of being in a favorable or superior position relative to competitors or alternatives.