(Answered) Multiple Choice QuestionEmvionmental policy is designed to eliminate the gap between privme costs…

Multiple Choice Question
Environmental policy is designed to eliminate the gap between private costs and social costs. An emissions charge can close this gap by ____ private marginal costs and thus encouraging ____ output.
decreasing private marginal costs; thus encouraging lower output
increasing private marginal costs; thus encouraging lower output
decreasing private marginal costs; thus encouraging higher output
increasing private marginal costs; thus encouraging higher output