-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake.
A) 3; only the lakeside residents
B) 3; either the firms or lakeside residents
C) 4; the firms
D) 4; either the firms or lakeside residents

Question

-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake.
A) 3; only the lakeside residents 
B) 3; either the firms or lakeside residents 
C) 4; the firms 
D) 4; either the firms or lakeside residents

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The Answer of 
-The figure above shows the costs associated with producing paper. When paper is produced, there is some pollution runoff into a lake. According to the Coase Theorem, if the transactions costs are low and there are only a few people involved, the output will equal ________ tons of paper if ________ own the lake.
A) 3; only the lakeside residents 
B) 3; either the firms or lakeside residents 
C) 4; the firms 
D) 4; either the firms or lakeside residents

-The Figure Above Shows the Costs Associated with Producing Paper