Figure: The Socially Optimal Quantity of Pollution (Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of Pollution, the optimal quantity of pollution:
A)could be achieved with a Pigouvian subsidy.
B)is unlikely to be achieved without government intervention.
C)could be achieved with a Pigouvian tax.
D)is unlikely to be achieved without government intervention, but it could be achieved with a Pigouvian tax.

Question

Figure: The Socially Optimal Quantity of Pollution   (Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of Pollution, the optimal quantity of pollution:
A)could be achieved with a Pigouvian subsidy. 
B)is unlikely to be achieved without government intervention. 
C)could be achieved with a Pigouvian tax. 
D)is unlikely to be achieved without government intervention, but it could be achieved with a Pigouvian tax.

Quizplus · Accepted Answer

The Answer of Figure: The Socially Optimal Quantity of Pollution   (Figure: The Socially Optimal Quantity of Pollution) In the figure The Socially Optimal Quantity of Pollution, the optimal quantity of pollution:
A)could be achieved with a Pigouvian subsidy. 
B)is unlikely to be achieved without government intervention. 
C)could be achieved with a Pigouvian tax. 
D)is unlikely to be achieved without government intervention, but it could be achieved with a Pigouvian tax.

Figure: the Socially Optimal Quantity of Pollution (Figure