Preserving the Environment Should Be a Permanent Part of Doing

question 48

Multiple Choice

Preserving the environment should be a permanent part of doing business for which of the following reasons?

• A) Consumer demand for environmentally safe products and packages is low.
• B) Public opinion demanding that firms conduct business in ways that preserve the natural environment is weak.
• C) Federal and state environmental regulations are fairly simple and static.
• D) Many consumers, suppliers, distributors, and investors shun doing business with environmentally strong firms.
• E) More lenders are examining the environmental liabilities of businesses seeking loans.

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Definitions:

Barriers To Entry

Economic or legislative obstacles that prevent new competitors from easily entering an industry or area of business.

Monopoly Power

The degree of power held by a singular entity to control prices or exclude competition within a market.

Natural Monopoly

A market condition where a single firm can supply a good or service to an entire market more efficiently than multiple firms due to high fixed or startup costs.

Economies Of Scale

The cost advantage that arises with increased output of a product, as fixed costs are spread over more units of production, reducing the cost per unit.