When society requires that firms reduce pollution, what happens?
A)There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers.
B)There is no tradeoff, since everyone benefits from reduced pollution.
C)There is no tradeoff for society as a whole, since the cost of reducing pollution falls only on the firms affected by the requirements.
D)There is a tradeoff only if some firms are forced to close.

Question

Quizplus · Accepted Answer

When firms are required to reduce pollution, they may incur additional costs, which can reduce their profits and have a negative impact on their owners, workers, and customers. Therefore, there is a tradeoff between reducing pollution and these economic interests.

When Society Requires That Firms Reduce Pollution, What Happens