University Researchers Create a Positive Externality Because What They Discover

Multiple Choice

University researchers create a positive externality because what they discover in their research labs can easily be learned by others who haven't contributed to the research costs. What could the federal government do to equate the equilibrium quantity of university research and the socially optimal quantity of university research produced?

A) tax university researchers
B) offer grants to university researchers
C) eliminate subsidized student loans
D) nothing