The Third Component of the Control of an Externality in a Tradable

The third component of the control of an externality in a tradable permits system ________.

A) is allowing parties to respond to incentives by choosing the most efficient means of abatement
B) involves providing incentives for abatement by internalizing the cost of the harm done by the pollution.
C) involves reflecting in the prices of goods and services, the costs of abatement and the social costs of the harm from the remaining pollution.
D) is allowing states to decide how best to decrease dangerous air pollution in the most cost effective manner.