Use the Table Below to Answer the Following Questions

question 85

Multiple Choice

Use the table below to answer the following questions.
Table 16.2.1

-Refer to Table 16.2.1. Given in the table are the marginal private cost and the marginal social cost of the production of chemical fertilizer and the marginal social benefit from the consumption of fertilizer. If the government decides to correct the externality problem, it could

• A)subsidize production by $20 per unit.
• B)subsidize production by $10 per unit.
• C)provide the good itself.
• D)tax production by $10 per unit.
• E)tax production by $20 per unit.