A-level Paper 1, June 2022Markets and Business Behaviour

A-level Paper 1, June 2022, Q3(b)

Which one of the following is the most likely effect of the £180 000 fine?

Multiple choice1 mark

Context

A company that provides drinking water and treats waste water has been fined £180000 after an incident that killed about 2 500 fish. The charges relate to an illegal discharge of sewage from the waste water treatment plant that polluted nine kilometres of the River Severn, a popular tourist destination.

Aincrease market failure
Bincrease profits for the water company
Creduce external costs
Dreduce government failure

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