Multiple Choice
To internalize a positive externality:
A) the consumers of a good could receive a subsidy equal to the external benefit resulting from the production or consumption of the good.
B) a producer's costs could be increased by an amount equal to the external benefit resulting from the production of the good.
C) consumers of the good could pay a tax equal to the external benefit resulting from the production or consumption of the good.
D) None of the above are correct.
Correct Answer:

Verified
Correct Answer:
Verified
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