To Correct for an External Benefit, the Government Should

To correct for an external benefit, the government should:

A) set a tax equal to the amount by which marginal private cost exceeds the marginal social cost
B) set a tax equal to the amount by which marginal social cost exceeds the marginal private cost
C) provide firms with a subsidy for the amount by which marginal private benefit exceeds the marginal social benefit
D) provide firms with a subsidy for the amount by which marginal social benefit exceeds the marginal private benefit