A Subsidy

question 17

Multiple Choice

A subsidy

• A)raises marginal social benefit above marginal social cost.
• B)makes marginal social cost equal marginal social benefit.
• C)results in efficient production.
• D)raises marginal social cost above marginal social benefit.
• E)makes world prices higher than domestic prices.

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Definitions:

Financial Advantage

The benefit obtained from making a particular financial decision, typically resulting in monetary gain or cost savings.

Outside Supplier

A third-party company or entity that provides goods or services to another company, external to the buying organization.

Segment Margin

The net income or deficit achieved by a specific section of a company following the deduction of both direct and indirect expenses attributable to that section.

Price Per Unit

The cost assigned to a single unit of a product or service, reflecting what consumers must pay to purchase one unit.