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Figure 5-4 Suppose There Are Several Paper Mills Producing Paper for a Mills

Question 72

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Figure 5-4 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

Figure 5-4
Figure 5-4 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
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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