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If a Subsidy Is Granted to Perfectly Competitive Firms That

question 13

Multiple Choice

If a subsidy is granted to perfectly competitive firms that provide external benefits to society, the firm's ________ curve will shift down and the industry ________ curve will shift to the right.


Definitions:

General Environment

Is the set of cultural, economic, legal–political, and educational conditions found in the areas in which the organization operates.

Specific Environment

The set of owners, suppliers, distributors, government agencies, and competitors with which an organization must interact to grow and survive.

Adhocracy

An organizational structure that is flexible, adaptable, and non-hierarchical, often used to spark innovation and tackle emerging issues.

Decentralization

The distribution of decision-making powers from a central authority to local or individual levels within an organization or system.

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