To encourage consumption of a good that generates positive externalities,the BEST option for policymakers would be to:

A) impose a tax on the amount consumed to achieve the socially optimal level.
B) mandate consumption of the good at the socially optimal level.
C) provide a subsidy per unit of the good consumed to achieve the socially optimal level.
D) do nothing since the market will achieve the socially optimal level without government intervention.

Positive Externalities

Benefits that are enjoyed by a third-party or the society at large, as a result of an economic transaction.

Socially Optimal Level

The socially optimal level is the quantity of production or consumption where the marginal social cost equals the marginal social benefit, maximizing overall welfare.

Policymakers

Individuals or groups responsible for making decisions and establishing regulations that guide the economic, social, and political governance of a society.