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If a Subsidy Is Granted to Perfectly Competitive Firms That

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Multiple Choice

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


Definitions:

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Anaphylactic Reaction

A severe, potentially life-threatening allergic reaction that can occur rapidly after exposure to an allergen.

Medication Allergy

An adverse immune response or hypersensitivity to a drug, which can range from mild rash to life-threatening reactions.

Bronchiolar Muscles

Smooth muscle tissues found in the walls of the bronchioles in the lungs, which contract and relax to regulate airflow.

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