Suppose That Recycling Rubber for Running Shoes Creates an External

Multiple Choice

Suppose that recycling rubber for running shoes creates an external benefit of $2.00 per tonne of rubber.There are no external costs.The efficient amount of rubber will be recycled when the government creates a

A) subsidy of more than $2.00 per tonne of rubber.
B) subsidy of $2.00 per tonne of rubber.
C) tax of more than $2.00 per tonne of rubber.
D) tax of $2.00 per tonne of rubber.
E) voucher valued at $2.10 a tonne of rubber.