When the EPA Receives a Premanufacture Notice from a Party

question 4

Multiple Choice

When the EPA receives a premanufacture notice from a party who intends to manufacture a new chemical:

• A) the EPA has 120 days within which to conduct tests on the chemical to determine its toxicity.
• B) the EPA may prohibit the manufacture and distribution of the chemical if the EPA finds that the substance presents or will present an unreasonable risk to health or the environment.
• C) the EPA may suggest, but not require specific labeling on the chemical.
• D) a and b.

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Definitions:

Natural Monopoly

A market structure where a single supplier is most efficient in producing the goods due to high fixed or startup costs, making it unfeasible for new entrants to compete.

Producer Surplus

The variance between the intended selling price by producers and the real price they end up receiving.

Consumers

Individuals or entities that purchase goods and services for personal use.

Producer Surplus

The difference between the amount producers receive for selling their goods and the minimum amount they would be willing to accept.