To Encourage Consumption of a Good That Generates Positive Externalities,the

To encourage consumption of a good that generates positive externalities,the BEST option for policymakers would be to:

A) impose a tax on the amount consumed to achieve the socially optimal level.
B) mandate consumption of the good at the socially optimal level.
C) provide a subsidy per unit of the good consumed to achieve the socially optimal level.
D) do nothing since the market will achieve the socially optimal level without government intervention.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free