Figure 5-4 Suppose There Are Several Paper Mills Producing Paper for a Mills

question 140

Multiple Choice

Figure 5-4

Suppose there are several paper mills producing paper for a market. These mills, located upstream from a fishing village, discharge a large amount of wastewater into the river. The waste material affects the number of fish in the river and the use of the river for recreation and as a public water supply source. Figure 5-4 shows the paper market. Use this Figure to answer the following question(s) .
-Refer to Figure 5-4.Why is there a deadweight loss?

• A)because the marginal social cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
• B)because the marginal private cost of producing each additional unit in excess of Q₂ exceeds the marginal benefit
• C)because the marginal social benefit of producing each additional unit in excess of Q₂ exceeds the private cost
• D)because the marginal private benefit of producing each additional unit in excess of Q₂ exceeds the social cost

---

Definitions:

Illegal Gambling

Refers to the act of betting or wagering on outcomes that is not sanctioned or regulated by the legal framework of the jurisdiction.

Self-report Survey

A research method where participants provide data about themselves, usually through questionnaires.

Uniform Crime Reporting Survey

A statistical program that collects and reports data on crime in Canada, providing a comprehensive overview of criminal incidents and trends.

Racist Hate Speech

Language used to promote hate or discrimination against individuals or groups based on their race or ethnicity.