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When pollution (a negative externality) is created by firms, which of the following is not a valid way for the government to restore the social optimum? a

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When pollution (a negative externality) is created by firms, which of the following is not a valid way for the government to restore the social optimum?

a. require firms to install pollution-abatement equipment

b. require firms to change production techniques to reduce emissions

c. levy a tax on the production of the good

d. require firms to pay for the environmental damage they create

e. offer a subsidy to firms to reduce their production costs