Suppose There Are Several Paper Mills Producing Paper for a Market

Multiple Choice

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. What is the deadweight loss from producing at the market equilibrium?

A) area C
B) area E
C) area D
D) area F