A New York Legislator Wanted to Create a Deposit on Cigarettes

Multiple Choice

A New York legislator wanted to create a deposit on cigarettes butts. If implemented, people would have the incentive to (1) not toss cigarette butts onto public streets and sidewalks, and (2) pick butts up to redeem them for the cash. The degradation of the environment from littered cigarette butts is a

A) private goods problem.
B) Nash equilibrium.
C) Tragedy of the Commons.
D) cost-benefit equilibrium.