Figure 5-9 Price of toilet paper Marginal social cost Marginal privato cost P2 X Po Marginal bonelit 0 10 0og Q Quantity of toilet paper Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and takes and causes substantial environmental damage. Figure 5-9 illustrates the situation in the toilet paper market. Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is to impose a tax to make the industry bear the external costs it creates to assign property rights to the firms in the industry, 7 Marginal benefit 0 07 Guantity of toilet paper Companies producing toilet paper bleach the paper to make it white. The bleach is discharged into rivers and lakes and causes substantial environmental damage. Figure 5-9 illustrates the situation in the tollet paper market. Refer to Figure 5-9. An efficient way to get the firm to produce the socially optimal output level is to impose a tax to make the industry bear the external costs it creates. to assign property rights to the forms in the industry to grant a subsidy to enable the industry to internalize the external costs of production for government to set a quota on the quantity of toilet paper that the toilet paper industry can produces Next