An example of a contingent environmental cost is:

A) provisions for a potential oil-spill cleanup.
B) when a firm produces a product that is difficult to dispose of safely.
C) lost business because of adverse television publicity.
D) equipment to prevent environmental damage.

Question

Ashley Lewis · Accepted Answer

Final Answer : A, Explanation :  A contingent environmental cost is a potential cost that a firm may incur based on a future event or circumstance. Provisions for a potential oil-spill cleanup is an example of a contingent environmental cost, as the cost would only be incurred if an oil spill were to occur. The other choices do not fit the definition of a contingent environmental cost.

An example of a contingent environmental cost is:

A) provisions for a potential oil-spill cleanup.
B) when a firm produces a product that is difficult to dispose of safely.
C) lost business because of adverse television publicity.
D) equipment to prevent environmental damage.

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Learning Objectives

Related questions

An example of a contingent environmental cost is:A) provisions for a potential oil-spill cleanup.B) when a firm produces a product that is difficult to dispose of safely.C) lost business because of adverse television publicity.D) equipment to prevent environmental damage.

Definitions

Learning Objectives

Learning Objectives

Related questions

An example of a contingent environmental cost is:

A) provisions for a potential oil-spill cleanup.
B) when a firm produces a product that is difficult to dispose of safely.
C) lost business because of adverse television publicity.
D) equipment to prevent environmental damage.