If a Subsidy Is Granted to Perfectly Competitive Firms That

question 239

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 ________.

• A) down; left
• B) down; right
• C) up; right
• D) up; left

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Definitions:

Social Era

Describes the period characterized by the widespread use and influence of social media and networking platforms, impacting communication, business, and society.

Business Ethics

The study and examination of moral and ethical problems that may arise in a business environment.

Work Environment

The setting, conditions, and culture in which employees operate, significantly influencing their productivity and satisfaction.

Creativity

The ability to produce original and unusual ideas, or to make something new or imaginative.