Figure 116 Suppose There Are Several Paper Mills Producing Paper

question 58

Multiple Choice

Figure 11.6 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 11.6 shows the paper market. Use this Figure to answer the following question(s) .
-Refer to Figure 11.6.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:

Essential Tremor

A neurological disorder that causes involuntary and rhythmic shaking, affecting mainly the hands but can also impact other parts of the body.

Rest

A period of relaxation, sleep, or inactivity, which is essential for physical and mental rejuvenation.

Paraplegia

The impairment or loss of motor or sensory function in the lower extremities, typically as a result of spinal cord injury or disease.

Trauma

Physical injury or wound, or emotional shock resulting from a violent event or situation that causes stress or pain.