Requiring that a firm engage in pollution abatement tends to reduce the firm's profits.

Question

Quizplus · Accepted Answer

Pollution abatement measures often have associated costs, such as investments in new equipment or changes to production processes. These costs can reduce a firm's profits in the short run. However, in the long run, pollution abatement can lead to benefits such as improved public relations, potential cost savings from increased efficiency, and reduced legal and financial risks associated with noncompliance.

Requiring That a Firm Engage in Pollution Abatement Tends to Reduce