If a Firm That Pollutes Wants to Maximize Profits,it Will

question 55

Multiple Choice

If a firm that pollutes wants to maximize profits,it will produce where

• A)The social value of production equals the social cost of production.
• B)Private and social costs are equal.
• C)Marginal revenue and private marginal cost are equal.
• D)Social benefits exceed social costs.

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Definitions:

Intangible Costs

Costs that are not directly measurable in monetary terms, such as brand value, intellectual property, and customer relationships.

Factor-Rating Analysis

A method for comparing the desirability of multiple options or locations based on a set of criteria, each weighted according to its importance.

Facility Location

The process of determining the most suitable location for a company’s manufacturing or service operation for optimization of its efficiency and effectiveness.

Zoning Regulations

are legal rules defining how property in specific geographic zones can be used, affecting land use, building heights, densities, and the separation of residential areas from commercial and industrial ones.