To Reach the Socially Optimal Allocation of Resources, the Amount

Multiple Choice

To reach the socially optimal allocation of resources, the amount of government revenue received from a pollution tax should be

A) equal to the negative externality cost associated with producing the good
B) less than the negative externality cost of producing the good
C) greater than the negative externality cost of producing the good
D) equal to the private cost of producing the good
E) greater than the private cost of producing the good