Which of the Following Statements Is Most Correct

Multiple Choice

Which of the following statements is most correct?

A) Pigovian taxes are often preferred over direct regulation because they typically reduce externalities at a lower cost
B) Pigovian taxes are less preferred than direct regulation because they typically reduce externalities at a higher cost
C) Pigovian taxes are often preferred over direct regulation because they typically reduce externalities at a faster rate
D) Pigovian taxes are less preferred than direct regulation because they typically reduce externalities at a slower rate