16. If society allows firms to freely pollute the environ- ment, then which of the following is true? a. Market equilibrium output will be too high relative to the efficient output level. output will be too low b. Market equilibrium relative to the efficient output level. c. Market equilibrium output will be equivalent to the efficient output level. d. The efficient output level can be achieved by giving firms a subsidy for the pollution they generate. 17. If there are external benefits for good X, then which of the following would be tnie? a. The socially efficient amount of good X can be achieved if society taxes consumers of good X. b. The socially efficient amount ofgood X can be achieved if society subsidizes consumers of good X. c. The socially efficient amount of good X will be equivalent to the free market equilibrium quantity. d. The socially efficient amount of good X does not exist. 18. Suppose a new pollution tax of $0.01 per kilowatt. hour of electricity is imposed on coal-fired power producers by the fuederal government. Which of the following correctly describes how this tax will affect