New “green belt” areas have been created to beautify the grounds around Tampa Power and Light Company. The green cover has created an external benefit for the citizens of Tampa. To incorporate the cost of this benefit, an economically efficient allocation of resources would result in
an increase in the price of the firm’s output.
a decrease in the price of the firm’s output.
a decrease in the quantity of the firm’s output.
a decrease in the price and an increase in the quantity of the firm’s output.
no change in the price or the quantity.
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