If the Government Wanted to Ensure That the Market Reaches

Multiple Choice

If the government wanted to ensure that the market reaches the socially optimal equilibrium in the presence of a technology spillover, it should

A) impose a corrective tax on any firm producing a technology spillover.
B) offer tax credits to consumers who are adversely affected by the new technology.
C) subsidize producers by an amount equal to the value of the technology spillover.
D) provide research grants to those firms not currently engaging in research to increase competition in the industry.