Emissions from Large Pulp and Paper Factories Create Health Risks

Multiple Choice

Emissions from large pulp and paper factories create health risks for pedestrians and discomfort for residents of the city of Ashdown, Arkansas. In this case:

A) too few of society's resources are used to produce paper.
B) the externality can be solved by imposing a specific tax on the pulp and paper factories.
C) there is an external benefit to society from the production of paper.
D) the externality can be internalized by granting a specific subsidy to pulp and paper factories.