Use the Following to Answer Question

question 170

Multiple Choice

Use the following to answer question:
Figure: The Socially Optimal Quantity of Pollution
-(Figure: The Socially Optimal Quantity of Pollution) Use Figure: The Socially Optimal Quantity of Pollution.In the figure,firms are the only beneficiaries of pollution,and costs are borne solely by others in the society.The optimal quantity of pollution could be achieved:

• A)with a Pigouvian subsidy.
• B)through a free market solution
• C)with a Pigouvian tax.
• D)by subsidizing consumers of the products produced by the firms.

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Definitions:

Lateral Epicondyle

A bony prominence on the outer side of the elbow, to which forearm muscles are attached.

Deltoid Tuberosity

A roughened area on the middle of the outer surface of the humerus, where the deltoid muscle attaches.

Obturator Foramen

A large opening in the hip bone formed by the pubic and ischial bones, through which nerves and blood vessels pass.

Acetabulum

The cup-shaped cavity at the base of the hip bone into which the ball-shaped head of the femur fits to form the hip joint.