Effective Methods of Dealing with Externalities Would Include

question 109

Multiple Choice

Effective methods of dealing with externalities would include

• A)taxing firms that generate beneficial externalities.
• B)imposing fines equal to the difference between MSC and MPC on firms that generate beneficial externalities.
• C)giving a subsidy per unit equal to the difference between MSC and MPC to firms that generate beneficial externalities.
• D)restricting the output of firms that generate beneficial externalities.

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