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Figure 5-9 Companies Producing Toilet Paper Bleach the Paper to Make It

Question 153

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Figure 5-9 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 5-9 illustrates the situation in the toilet paper market. -Refer to Figure 5-9.An efficient way to get the firm to produce the socially optimal output level is

Figure 5-9
Figure 5-9 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 5-9 illustrates the situation in the toilet paper market. -Refer to Figure 5-9.An efficient way to get the firm to produce the socially optimal output level is A) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce. B) to impose a tax to make the industry bear the external costs it creates. C) to grant a subsidy to enable the industry to internalize the external costs of production. D) to assign property rights to the firms in the industry.
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 5-9 illustrates the situation in the toilet paper market.
-Refer to Figure 5-9.An efficient way to get the firm to produce the socially optimal output level is


A) for government to set a quota on the quantity of toilet paper that the toilet paper industry can produce.
B) to impose a tax to make the industry bear the external costs it creates.
C) to grant a subsidy to enable the industry to internalize the external costs of production.
D) to assign property rights to the firms in the industry.

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