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Figure 154 Suppose There Are Several Paper Mills Producing Paper

question 7

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Figure 15.4 Figure 15.4   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 15.4 shows the paper market.Use this Figure to answer the following question(s) . -Refer to Figure 15.4.Why is there a deadweight loss? A) Because the marginal social cost of producing each additional unit in excess of Q<sub>2 </sub>exceeds the marginal benefit B) Because the marginal private cost of producing each additional unit in excess of Q<sub>2 </sub>exceeds the marginal benefit C) Because the marginal social benefit of producing each additional unit in excess of Q<sub>2</sub> exceeds the private cost D) Because the marginal private benefit of producing each additional unit in excess of Q<sub>2</sub> exceeds the social cost 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 15.4 shows the paper market.Use this Figure to answer the following question(s) .
-Refer to Figure 15.4.Why is there a deadweight loss?

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