Case study Consider two firms called Firm A and Firm B, which have similar revenue and expenses. Firm A, however, makes a much greater effort to clean up the environment; it spends $10 million, while Firm B spends $2 million. The profit of each firm is shown in the following exhibit . Firm A Firm B Revenue $90,000,000 $90,000,000 Total operating expenses $80,000,000 $80,000,000 Environmental cleanup expenses --$10,000,000 --$2,000,000 Profit 0 $8,000,000