What happens when society requires that firms reduce pollution?
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 because 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 society requires that firms reduce pollution, there is often a tradeoff because reducing pollution can be costly for firms. This can result in reduced incomes for the firms' owners, workers, and customers. However, the benefits of reduced pollution can also be significant for society as a whole, such as improved public health and a cleaner environment. Therefore, there may be a tradeoff between the costs incurred by firms and the benefits received by society.

What Happens When Society Requires That Firms Reduce Pollution