In a perfectly competitive market, firms are price takers and compete mainly on the basis of price. They aim to minimize costs to maximize profits. Installing pollution control equipment is often costly, and if it doesn't directly contribute to reducing production costs or increasing product price, a perfectly competitive firm might not have an immediate economic incentive to do so. However, there are a few reasons why a firm might still choose to install pollution control equipment: 1. Regulatory Compliance: If there are environmental regulations in place that penalize firms for excessive pollution, the firm might install pollution control equipment to avoid these penalties. 2. Social Responsibility: The firm might choose to reduce its environmental impact as part of its corporate social responsibility. This could improve its reputation, which could indirectly lead to increased sales. 3. Long-term Sustainability: Reducing pollution could lead to a more sustainable business model in the long run. For example, it could reduce the firm's dependence on non-renewable resources. 4. Potential Future Regulations: If the firm anticipates stricter environmental regulations in the future, it might choose to install pollution control equipment now to avoid more costly adjustments later