In Order to Increase a Society's Total Welfare,a Production Process

Multiple Choice

In order to increase a society's total welfare,a production process that produces a negative externality should be _____

A) taxed.
B) encouraged to produce goods in excess of the socially optimum level.
C) encouraged to produce in excess of the private optimum level.
D) subsidized if the good is produced for foreign markets.
E) subsidized if the good is produced for the domestic market.