A Market with a Negative Externality Will Reach an Efficient

Multiple Choice

A market with a negative externality will reach an efficient outcome when resources are allocated to those with the greatest willingness to pay. To help a market reach efficiency, the government can:

A) tax consumers.
B) offer consumers a subsidy.
C) place a quota at the efficient level.
D) All of these are options the government can take to help a market reach efficiency.