Use the Following to Answer Questions

question 44

Multiple Choice

Use the following to answer questions:
Figure: External Cost 1
-(Figure: External Cost 1) Refer to the figure. Paper mills are notorious for emitting horrible smells that impose external costs on those living around the mills. According to the figure, what is the efficient price and quantity of paper?

• A) P = $4; Q = 30
• B) P = $5; Q = 30
• C) P = $6; Q = 50
• D) P = $4; Q = 50

---

Definitions:

Hippocampus

A region of the brain involved in the formation of new memories and is also associated with learning and emotions.

Amygdala

A brain structure involved in processing emotions, particularly fear and pleasure.

Overexposure

The excessive exposure to a factor, such as sunlight, chemicals, or information, which can lead to negative health consequences or desensitization.

Cortisol Secretion

The process of releasing cortisol, a steroid hormone, from the adrenal glands in response to stress or low blood-glucose concentration.