An efficient way to get the firm to produce the socially optimal output level is O...

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An efficient way to get the firm to produce the socially optimal output level is O to kmpose a tax to make the industry bear the external costs it creates. O to assign property rights to the firms in the industry. Oto grant a subsidy to enable the industry to internalize the external costs of production. Ofor government to set a quota on the quantity of toilet paper that th toilet paper industry can produce. Price of toilet paper Marginal social cost Marginal privato cost P2 P. Po Marginal benefit Quantity of tollet papor Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and lakes and causes substantial environmentai damage. illustrates the situation in the toilet paper market. An efficient way to get the firm to produce the socially optimal output level is O to kmpose a tax to make the industry bear the external costs it creates. O to assign property rights to the firms in the industry. Oto grant a subsidy to enable the industry to internalize the external costs of production. Ofor government to set a quota on the quantity of toilet paper that th toilet paper industry can produce. Price of toilet paper Marginal social cost Marginal privato cost P2 P. Po Marginal benefit Quantity of tollet papor Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and lakes and causes substantial environmentai damage. illustrates the situation in the toilet paper market.

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