A possible solution to the problems of external benefits is
A) to tax those receiving the extra benefits.
B) production of the good by government.
C) effluent fees.
D) to restrict the amount of the good through direct government regulation.

Question

Quizplus · Accepted Answer

Production of the good by government can address the issue of external benefits by ensuring that goods or services with positive externalities are provided at a level closer to the socially optimal level, compensating for the market's underprovision of these goods.

A Possible Solution to the Problems of External Benefits Is