Suppose a Competitive Industry Generates Some Sort of Pollution While

Multiple Choice

Suppose a competitive industry generates some sort of pollution while producing its output.In order to internalize the externality,the government may:

A) impose a tax equal to the marginal external cost of pollution.
B) offer a subsidy equal to the marginal external benefit derived from the consumption of the good.
C) impose a quota that reduces output to the point where private marginal costs of production equal marginal revenue.
D) impose a price floor on the good produced by the industry.