When pollution is put into the environment by factories who produce a specific good, is NOT a method for the government to restore the social optimum. Offer a subsidy to factories who produce the specific good. Require factories to change production techniques to reduce emissions. Require factories to pay for the environmental damage they create. Place a tax on the production of the specific good.

When pollution is put into the environment by factories who produce a specific good, is NOT a method for the government to restore the social optimum. Offer a subsidy to factories who produce the specific good. Require factories to change production techniques to reduce emissions. Require factories to pay for the environmental damage they create. Place a tax on the production of the specific good.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter14: Environmental Economics

Section: Chapter Questions

Problem 18SQ

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