The Command and Control Method to Solving an External Cost

Multiple Choice

The command and control method to solving an external cost problem usually involves:

A) the imposition of taxes on the consumption of the item that is causing the external cost.
B) the institution of a subsidy on the consumption of the item that is causing the external cost.
C) the issuance of a regulation on the production, operation, or use of the item that is causing an external cost.
D) a price ceiling on the item that is causing an external cost.