-Refer to the Diagram Above

Multiple Choice

-Refer to the diagram above.Taxing the production of this good by an amount equal to the external cost would

A) place the entire burden of the external cost on producers.
B) be ineffective because the external cost is not eliminated.
C) place the entire burden of the external cost on consumers.
D) not achieve an efficient solution.
E) divide the burden of the external cost between producers and consumers.