If the Detriment to Society from a Negative Externality Is

Multiple Choice

If the detriment to society from a negative externality is measure as $5 per unit of output of a particular good, the best way of moving closer to the social optimum would be to:

A) subsidize consumers who purchase the good by $5 per unit to offset the negative externality that they may endure.
B) limit the production of the good to four days per week.
C) calculate the negative value of the externality and assess a fine on each producer to pay for clean up in proportion to their profits from production of the good.
D) assess a simple tax of $5 per unit of production on suppliers of the good.