Analyze how changes in environmental regulation may affect ABC.

• A. Stricter recycling laws could increase e-waste collection, but tougher compliance rules could raise costs
• B. Regulations have no impact
• C. Stricter recycling laws would decrease collection
• D. Deregulation would maximize profits

Answer: (A)

When environmental regulation tightens, it changes how ABC operates and what it costs. Stricter recycling laws push ABC to collect more e-waste to comply with the rules, so the level of e-waste collection is likely to rise. At the same time, tougher compliance rules—things like detailed reporting, mandatory take-back programs, audits, and fees—add roles, processes, and paperwork, which raise operating costs. So the best answer reflects both sides: collection increases due to the regulation, but costs also rise because of the extra compliance requirements.