Due to the fact that firms concern themselves primarily with earning profits,a common complaint is that they often damage the environment in the process.More recently,markets have been set up so that firms can actually reduce their costs and profit more by damaging the environment less and selling their "right to pollute" to other companies.Discuss how this serves as a positive incentive for a firm to act in an environmentally responsible manner.What would be a way to discourage firms from polluting through the use of negative incentives?

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The Answer of Due to the fact that firms concern themselves primarily with earning profits,a common complaint is that they often damage the environment in the process.More recently,markets have been set up so that firms can actually reduce their costs and profit more by damaging the environment less and selling their "right to pollute" to other companies.Discuss how this serves as a positive incentive for a firm to act in an environmentally responsible manner.What would be a way to discourage firms from polluting through the use of negative incentives?

Due to the Fact That Firms Concern Themselves Primarily with Earning