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The private marginal cost for a factory that produces widgets in dollars is PMC = 2Q. The private marginal benefit of consumers of widgets in

The private marginal cost for a factory that produces widgets in dollars is PMC = 2Q. The private marginal benefit of consumers of widgets in dollars is PMB = 120 -Q. Unfortunately, production of widgets involves emission of pollution. That pollution causes a cost to nearby residents of $30 per widget produced. Which of the following isnotcorrect?

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To achieve the socially optimal outcome the government could require that output must not exceed 40 widgets.

To achieve a socially optimal outcome the government could require that production of widgets be no more than 30.

To achieve a socially optimal outcome the government could impose a per unit tax on widgets of $30.

Assigning property rights over the air into which the pollution is emitted to the nearby residents can achieve a socially optimal outcome.

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