Refer to Figure 28

Refer to Figure 28.2. Assume this firm initially has marginal costs equal to Private MC₁ and is polluting. If the government decides to use emission charges to reduce pollution, the firm's MC curve will shift to

A) MC₃ and the rate of output will decrease.
B) MC₃ and the rate of output will increase.
C) MC₂ and the rate of output will decrease.
D) MC₂ and the rate of output will increase.