To increase efficiency,
A) taxes can be used to overcome the problems created by both external benefits and external costs.
B) subsidies can be used to overcome problems created by both external benefits and external costs.
C) taxes can be used to overcome the problems created by external benefits, and subsidies can be used to overcome the problems created by external costs.
D) subsidies can be used to overcome the problems created by external benefits, and taxes can be used to overcome the problems created by external costs.
Correct Answer:
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