Suppose There Are Several Paper Mills Producing Paper for a Market.These

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 economically efficient output level?

A) Q1
B) Q2 minus Q1
C) Q2
D) Q1 plus Q2