Evert rational producer makes provision makes provision for depreciation to replace fixed assets after the expiry of expected life time. He takes care of physical, but in the pursuit of increasing production he must have been causing damage to natural capital (resources and enviroment). Suggest solution to the problem.

Evert rational producer makes provision makes provision for depreciati

1.	Evert rational producer makes provision makes provision for depreciation to replace fixed assets after the expiry of expected life time. He takes care of physical, but in the pursuit of increasing production he must have been causing damage to natural capital (resources and enviroment). Suggest solution to the problem.
Answer» SOLUTION :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.

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