
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.
Correct Answer:
Verified
Q148: Consider the following methods of pollution reduction:
A.the
Q149: Figure 5-9 Q150: Figure 5-9 Q151: What is the rationale behind a tradable Q152: Figure 5-10 Q154: Government-imposed quantitative limits on the amount of Q155: Some policymakers have argued that products like Q156: Suppose a tax equal to the value Q157: Figure 5-9 Q158: Governments can increase the consumption of a Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
![]()
![]()
![]()
![]()