Suppose That the Production of Sunflowers Generates a Positive Externality

Multiple Choice

Suppose that the production of sunflowers generates a positive externality in that travelers enjoy the scenic beauty of sunflower fields. An appropriate government policy yielding the socially optimum outcome in this case might be:

A) a corrective tax.
B) a corrective subsidy.
C) sunflower-production permits.
D) a reduction in transaction costs.