What Do Environmentalists Set as an Objective for Profitability

question 87

Multiple Choice

What do environmentalists set as an objective for profitability?

• A) Companies should surpass the strictest environmental standards even if it negatively affects profitability.
• B) Companies will never be profitable if they comply with environmental standards, so taxpayers must subsidize all production.
• C) Profitability should not be a concern when addressing issues of environmental importance.
• D) Environmentalism should be made profitable, and companies attempting to protect the environment should not have to compete with those harming it in the marketplace.
• E) Companies will be more profitable if they work hard to protect the environment because consumers will reward their efforts through loyalty.

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Definitions:

Less Elastic

Describes a demand that is relatively unresponsive to changes in price, indicating that consumers' buying habits do not significantly alter with price fluctuations.

More Elastic

Describes demand that is highly sensitive to changes in price, where consumers significantly alter their quantity demanded with slight price variations.

Price-Discriminating Firm

A company that engages in the practice of charging different prices for the same product in different markets or segments.

Elastic Demand

Refers to a situation where the quantity demanded of a good or service significantly changes in response to a change in price.