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(Figure: Benefits of Asparagus) Suppose That Eating Asparagus Reduces the Incidence

Question 49

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(Figure: Benefits of Asparagus) Suppose that eating asparagus reduces the incidence of contagious disease. The external marginal benefit of asparagus is $3. To achieve the socially optimal quantity of asparagus, the government should: (Figure: Benefits of Asparagus)  Suppose that eating asparagus reduces the incidence of contagious disease. The external marginal benefit of asparagus is $3. To achieve the socially optimal quantity of asparagus, the government should:   A)  subsidize the production of asparagus by $6 per pound, increasing output to 6,000 pounds. B)  tax the production of asparagus by $6 per pound, decreasing output to 6,000 pounds. C)  subsidize the production of asparagus by $3 per pound, increasing output to 4,000 pounds. D)  tax the production of asparagus by $3 per pound, decreasing output to 4,000 pounds.


A) subsidize the production of asparagus by $6 per pound, increasing output to 6,000 pounds.
B) tax the production of asparagus by $6 per pound, decreasing output to 6,000 pounds.
C) subsidize the production of asparagus by $3 per pound, increasing output to 4,000 pounds.
D) tax the production of asparagus by $3 per pound, decreasing output to 4,000 pounds.

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