A chemical fertiliser manufacturing company estimated its annual cost of production to be Rs. 20 lakh. The cost included expenditure incurred on factor and non factor inputs. However industrial waste is causing water pollution for which no provision is made by the company. comment.

A chemical fertiliser manufacturing company estimated its annual cost

1.	A chemical fertiliser manufacturing company estimated its annual cost of production to be Rs. 20 lakh. The cost included expenditure incurred on factor and non factor inputs. However industrial waste is causing water pollution for which no provision is made by the company. comment.
Answer» Solution :Cost of PRODUCTION is not the money cost of production only. A PRODUCER who is only concerned with the money cost of production and not with social cost and environment loss in not doing justice to the society. This producer is ignoring loss of biodiversity and water pollution caused by his production activity. He should follow the emission standards regarding SUPPLY of toxic SUBSTANCES into the water fixed by the government so that water pollution can be kept under check.