It Is the Custom for Paper Mills Located Alongside the Layzee

question 52

Multiple Choice

It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river.Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. Refer to the above information.If nothing is done to correct this situation:

• A) there will be an overallocation of resources to the production of electricity.
• B) there will be an underallocation of resources to the production of paper goods.
• C) there will be an overallocation of resources to the production of paper goods.
• D) the price of electricity will be lower than it should be.

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