Figure 5-1 Suppose There Are Several Paper Mills Producing

question 29

Multiple Choice

Figure 5-1 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 5-1 shows the paper market.Use this Figure to answer the following question(s) .
-Refer to Figure 5-1.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:

Ethical

Pertains to moral principles or the branch of knowledge dealing with right and wrong behaviors.

Autosuggestion Techniques

Self-improvement strategies or exercises that involve repeating positive affirmations or visualizing success to influence one's behavior or performance.

Parallel Dimensions

Hypothetical or theoretical realms or universes that exist alongside our own, as imagined in science fiction and physics theories.

Global Firms

Companies that operate and have a market presence in multiple countries around the world.