The social opportunity cost of a new environmental regulation should include the cost of enforcement.

Question

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The social opportunity cost of a new environmental regulation should include all the costs associated with its implementation and enforcement, not just the direct costs of compliance by businesses or individuals. These costs may include the cost of monitoring and enforcement activities by regulatory agencies, as well as any costs associated with legal challenges or other forms of resistance to the regulation. Thus, including the cost of enforcement is an important part of assessing the overall impact of new environmental regulations on society.

The Social Opportunity Cost of a New Environmental Regulation Should