Multiple Choice
If the production of a good generates external benefits,the government could increase efficiency by
A) taxing the production of the good to reduce the amount produced.
B) subsidizing the production of the good to increase the amount produced.
C) regulating the production of the good to reduce the amount produced.
D) requiring all producers of the product to be licensed to produce the product.
Correct Answer:

Verified
Correct Answer:
Verified
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