Pollution is a classic example of:
A)cost minimisation by firms
B)corporate greed
C)market failure
D)an efficient market outcome

Question

Quizplus · Accepted Answer

Pollution is a classic example of market failure, where the market fails to allocate resources efficiently. Firms may not consider the negative externalities of their production activities, and therefore do not take into account the costs imposed on society. As a result, pollution is produced at a level higher than what would be socially optimal, leading to inefficiency and harm to the environment and public health.

Pollution Is a Classic Example Of