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The optimal amount of pollution is NOT zero because
Working Capital
The difference between a company's current assets and current liabilities, indicating the available short-term assets to cover short-term debts.
Book Value
The value of an asset as recorded on the balance sheet, calculated as the cost of an asset minus accumulated depreciation.
Acid-test Ratio
Acid-test ratio is a financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets (cash, marketable securities, and current receivables) without selling any inventory.
Debt-to-equity Ratio
A ratio illustrating the proportional use of shareholder equity and debt in the acquisition of a company's assets.
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