-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton.
A) 3; $150
B) 4; $100
C) 4; $200
D) None of the above answers is correct.

Question

-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. Without regulation, ________ tons of paper will be produced and the price will be ________ per ton.
A) 3; $150 
B) 4; $100 
C) 4; $200 
D) None of the above answers is correct.

Quizplus · Accepted Answer

Without regulation, the market equilibrium is determined by the intersection of the supply and demand curves, which is at 4 tons and $100 per ton.

-The Figure Above Shows the Costs Associated with Producing Paper