An External Cost Is a Produced-to-Producer or Consumer-to-Consumer Cos Assignment - 7

An External Cost Is a Produced-to-Producer or Consumer-to-Consumer Cost - Assignment Example Through profits, businesses have the capacity to reward its employees, who in turn get the ability to cater to their needs. For instance, through online jobs, I find some extra income for my upkeep. The other principle is economic viability. This enables businesses to have the capacity to cater for the needs of individuals in the society in future. For this to occur, businesses need to avoid the depletion of their resources and save for future usage. 5. The life cycle costs allow a business to undertake a lifetime comparison of the available options in making a purchase. This allows the conversion of future costs to their present value to account for inflation, and that has the lowest cost in its lifecycle is the most viable. 6. Effective EPR policies ensure that businesses have a liability of future external costs that for instance, relate to land contamination. Companies will internalize the costs in the form of business decisions that results in the pricing of raw materials commercially. This leads to the reduction of the external costs. 9. Ecological footprint relies on the fact that the earth produces all the renewable resources. It is the reliability of such resources for the production of goods and services, in order to sustain a particular lifestyle. 10. External costs lead to an increase in credit risks that cause a decrease in opportunities due to the limitation of resources such as bank loans. Therefore, businesses have a constraint in competing effectively in the market. 12. Third-party certifiers subject the products of a given company to sustainability tests. They determine the sales of certain products due to strict conditions that only certified products should be available in the market. 13. It is cheaper to purchase products that have negative impacts on the environment, as compared to the products that have a less environmental impact. Businesses do not have a strict obligation to pay the taxes on their operations on a full scale. Therefore, it has been hard to define equity in most businesses and this has led to the maintenance of external costs.