Use the Following to Answer Questions

question 44

Multiple Choice

Use the following to answer questions:
Figure: External Cost 1
-(Figure: External Cost 1) Refer to the figure. Paper mills are notorious for emitting horrible smells that impose external costs on those living around the mills. According to the figure, what is the efficient price and quantity of paper?

• A) P = $4; Q = 30
• B) P = $5; Q = 30
• C) P = $6; Q = 50
• D) P = $4; Q = 50