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.