Suppose There Are Several Paper Mills Producing Paper for a Market.These

question 196

Multiple Choice

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 5-4 shows the paper market.Use this Figure to answer the following question(s) .
-Refer to Figure 5-4.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:

Treatment

The application of remedies or therapies to cure disease, relieve symptoms, or improve health in a patient.

Favorably

In a way that shows approval or preference; positively or with good results.

Hand Reflexology

A complementary therapy involving the application of pressure to specific points on the hands believed to correspond to different body organs and systems.

Corresponding Body Part

A specific bodily organ or extremity that relates or corresponds to a particular function or activity.