Which of the Following Statements Is (Are) TRUE

Multiple Choice

Which of the following statements is (are) TRUE?
I. A quota can be used to address negative externalities only, not positive externalities.
II. Implementing pollution quotas is difficult because quotas must be implemented on a firm-by-firm basis.
III. The government could produce the good itself as a method of increasing the quantity of a good with a positive externality.

A) II
B) I and III
C) I, II, and III
D) II and III