Figure 159 Companies Producing Toilet Paper Bleach the Paper to to Make

question 86

Multiple Choice

Figure 15.9 Companies producing toilet paper bleach the paper to make it white.The bleach is discharged into rivers and lakes and causes substantial environmental damage.Figure 15.9 illustrates the situation in the toilet paper market.
-Refer to Figure 15.9.An efficient way to get the firm to produce the socially optimal output level is

• A)for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.
• B)to impose a tax to make the industry bear the external costs it creates.
• C)to grant a subsidy to enable the industry to internalise the external costs of production.
• D)to assign property rights to the firms in the industry.

---

Definitions:

Flat Structure

An organization structure that has wide spans of control and few hierarchical levels.

Decision Making

The process of selecting a course of action from several alternatives to achieve a desired outcome.

Levels of Management

The hierarchical layers of authority in an organization, typically ranging from top management to middle management to lower management.

Chain of Command

A hierarchical structure in an organization defining the authority and communication line from the highest to the lowest ranks.