From an Economic Standpoint, the Amount of Pollution Should Be

question 234

Multiple Choice

From an economic standpoint, the amount of pollution should be

• A) zero.
• B) the amount that allows firms to maximize profits.
• C) the amount where firms are earning a normal rate of return on investment.
• D) at the point at which the marginal benefit from further reduction equals the marginal cost of further reduction.

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Definitions:

Net Income

The total earnings of a company after deducting all expenses and taxes from total revenue, indicating the company's profitability.

Prepaid Expenses

Payments made in advance for goods or services to be received in the future, recorded as assets until they are consumed.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when cash is exchanged.

Accounts Receivable

Money owed to a company by its customers or clients for goods or services provided on credit.