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

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Definitions:

Rods

Light-sensitive cells in the retina that function in low light.

Color Vision

The ability of an organism to differentiate various light wavelengths, enabling it to see and interpret a range of colors.

Hue

A color or shade, representing the aspect of color that is determined by the wavelength of light.

Saturation

The point at which a substance can absorb or dissolve no more of another substance, or in signal processing, the maximum limit of signal strength.