Suppose the government mandates the installation of a certain type of pollution abatement equipment for the leather tannery industry.For some firms in the industry, installing this equipment may not be the most cost effective method of reducing pollution.

Question

Quizplus · Accepted Answer

It is possible that for some firms in the leather tannery industry, installing the mandated pollution abatement equipment may not be the most cost effective option. This could be due to factors such as the age or size of the firm, the specific production processes used, or other factors that vary among firms in the industry. However, despite this potential variation, the government may still mandate the installation of the equipment in order to achieve a desired level of pollution reduction across the industry as a whole.

Suppose the Government Mandates the Installation of a Certain Type