When Society Requires That Firms Reduce Pollution, There Is

question 200

Multiple Choice

When society requires that firms reduce pollution, there is

• A)a tradeoff because of reduced incomes to the firms' owners and workers.
• B)a tradeoff only if some firms are forced to close.
• C)no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements.
• D)no tradeoff, since everyone benefits from reduced pollution.

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Tying

A business practice where a seller requires buyers to purchase a secondary product as a condition of buying a primary product.

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Government-imposed controls on the maximum or minimum allowable prices for certain goods or services, often to protect consumers.

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