A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions. What is the result?

Question

Business

Maximo Bass

25 July, 08:00

A firm that produces chemical solvents creates some air pollution because of the emissions from its manufacturing facilities. A tax is imposed on the firm, equal to the costs of environmental damage caused by a unit of the emissions. What is the result?

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Answers (1)

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Mason Hanson · Answer 1

The correct answer is The quantity of chemical solvents produced now will be the efficient amount.

Explanation:

Starting from the described situation, a practice is evidenced that progressively destroys the environment as it is mainly air and water pollutant. In order to minimize this type of fines, it is likely that the plant will operate more efficiently, which means that the polluting emissions will be taken into account in the chemical process and more solvents will be added in order to carry out a cleaner and less destructive process for nature.