It Is the Custom for Paper Mills Located Alongside the Layzee

question 118

Multiple Choice

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. As a result, operators of hydroelectric power-generating plants downstream along the river find that they must clean up the river's water before it flows through their equipment.If the government intervenes and corrects the externality in the situation described above, we would expect

• A)the output of the paper mills to increase.
• B)the price of paper from the mills to decrease.
• C)production of the hydroelectric power plants to decrease.
• D)production in the paper mills to decrease.

---

Definitions:

Erection

The physiological process by which certain tissues in the body, such as the penis or clitoris, become enlarged and firm, typically as a result of sexual arousal or stimulation.

Viagra

A medication commonly used to treat erectile dysfunction (ED) by increasing blood flow to the penis.

Epinephrine

A hormone and neurotransmitter, also known as adrenaline, that increases heart rate, contracts blood vessels, dilates air passages, and participates in the fight-or-flight response of the sympathetic nervous system.

Lipitor

A pharmaceutical drug used to lower cholesterol levels by inhibiting the enzyme responsible for its production in the liver.