If a company dumps pollution in the water and if transactions costs are high
A)All parties connected with the pollution should negotiate
B)The company should be liable
C)The company should be allowed to pollute
D)The company should go out of business

Question

Quizplus · Accepted Answer

The company should be liable for the pollution it is dumping in the water. This would ensure that the company takes responsibility for its actions and takes steps to reduce their pollution levels. Allowing the company to continue polluting or go out of business would not address the issue of pollution and its impact on the environment and society. Negotiation may not be a feasible solution if transactions costs are high.

If a Company Dumps Pollution in the Water and If