Question

every rational producer makes provision for depreciation to replace fixed assests after the expiry of an expected life time .he taxes care of physical capital but in the pursuit of increasing production he must have been causing damage to nutural capital (resources and enviorment ) suggest a solution to the problem

Answer 1

hyy mate ✌️✌️

The producer should also make provision for loss caused to nature (in form of exploitation of natural resources and environmental pollution). He should follow the concept of green GNP.

Hope it will help you ❣️