Effective Methods of Dealing with Externalities Would Include

Multiple Choice

Effective methods of dealing with externalities would include

A) taxing firms that generate beneficial externalities.
B) imposing fines equal to the difference between MSC and MPC on firms that generate beneficial externalities.
C) giving a subsidy per unit equal to the difference between MSC and MPC to firms that generate beneficial externalities.
D) restricting the output of firms that generate beneficial externalities.