Since trash generation involves an externality, the way economists might address the problem of trash generation that is most likely to be optimal is by:
A. not allowing persons to throw away more trash than is acceptable as a maximum.
B. having the government require mandatory sorting and recycling of trash.
C. integrating the cost of the externality into the initial price of the good.
D. having the cost of the externality be paid by the government.
Answer: C
Economics
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