Figure 4-11 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 4-11 illustrates the situation in the toilet paper market.
-Refer to Figure 4-11.The efficient output is

Question

Figure 4-11  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 4-11 illustrates the situation in the toilet paper market.
-Refer to Figure 4-11.The efficient output is

Quizplus · Accepted Answer

The efficient output occurs where the supply (QS1) and demand (U1B12) curves intersect, at a quantity of 12 and a price of $1. At this level of output, the marginal cost of production is equal to the marginal benefit to consumers. Any output level above 12 would result in a deadweight loss, as the cost to produce additional units exceeds the benefit to consumers.

Figure 4-11 Companies Producing Toilet Paper Bleach the Paper