Question

When society requires that firms reduce pollution, there is a. a tradeoff because of reduced incomes to the firms' owners and workers. b. a tradeoff only if some firms are forced to close. c. no tradeoff, since the cost of reducing pollution falls only on the firms affected by the requirements. d. no tradeoff, since everyone benefits from reduced pollution.

Answer 1

Answer:

A

Explanation:

A definition of tradeoff is: a sacrifice of one good to purchase or produce another good. Must be made because when a resource is used to produce one good, that same resource cannot be used to produce another good.

If there is a require to the firm to reduce pollution, the firm must incurre in more expenses and tradeoff.