What Happens When Society Requires That Firms Reduce Pollution

Multiple Choice

What happens when society requires that firms reduce pollution?

A) There is a tradeoff because of reduced incomes to the firms' owners, workers, and customers.
B) There is no tradeoff, since everyone benefits from reduced pollution.
C) There is no tradeoff for society as a whole because the cost of reducing pollution falls only on the firms affected by the requirements.
D) There is a tradeoff only if some firms are forced to close.