Consider a competitive industry in which a "green" company uses a cleaner but costlier production method than is used by other firms. In the long run, the "green" company will:

Question

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The "green" company is using a costlier production method, which means it incurs higher costs to produce its products. This will put the company at a cost disadvantage compared to its competitors. The higher costs will result in lower profits or even economic losses in the long run. If the company continues to operate at a loss, it may be forced to exit the industry. Thus, option C is the most likely outcome for the "green" company.

Consider a Competitive Industry in Which a "Green" Company Uses