Chapter 38, Problem 13TYK

Summary Introduction

To analyze: The price of energy and its real costs. The study of the factors involved in the hidden environmental costs that are not reflected in the real price of the fossil fuels. Also determine the appropriate costs and prices of oil by the manufacturers and investors of shares in the company.

Introduction: The price of setting up various big industries is very costly and expensive for the manufacture of the goods and products. The machines which are manufactured and established in the companies require a tremendous investment from the businessmen and share holding partners. It depends upon appropriate investment policies with genuineness in the partnership relationships. The exhaust of these industries is a serious environmental threat along with the dumping of the toxic byproducts into the rivers and oceans, which causes a threat to the existing species of plants and animals.