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-Producing Leather Creates External Costs in the Form of Water

question 30

Multiple Choice

  -Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. If the government sets a pollution limit that achieves efficiency, how many tonnes of leather are produced? A)  300 tonnes B)  0 tonnes C)  200 tonnes D)  More than 300 tonnes E)  More than 0 tonnes and less than 200 tonnes
-Producing leather creates external costs in the form of water pollution. The figure above illustrates the market for leather. If the government sets a pollution limit that achieves efficiency, how many tonnes of leather are produced?


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