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Put it at a disadvantage while competing with other producers.
A individual firm will be at a competitive disadvantage if it complies with the requirements on its own unless a government regulation mandates that all businesses in an industry must adhere to the same standards.
What are external costs?
External costs, which include congestion, air pollution, climate change, accidents, noise, expenses for upstream and downstream operations, costs for nature and the environment, and additional costs in urban areas, are costs that are generated by transportation users but are not borne by them directly.
What distinguishes a business from a firm?
A company, which is distinct from a firm and refers to all business forms and trades, is a company that sells goods and/or services for profit. A company has one or more locations, all of which are owned by the same person and file their financial reports using the same EIN.
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