Economists view pollution as an economic problem that arises because:

Question

Quizplus · Accepted Answer

Economists recognize that firms that pollute do not pay the full social cost of producing their output. This is because the cost of the pollution is not borne by the firm but instead by society as a whole, such as through the negative health impacts of pollution or damage to the environment. As a result, firms have little incentive to reduce their pollution levels since they are not paying the full cost of their actions.

Economists View Pollution as an Economic Problem That Arises Because