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What Is a Subsidy? Describe the Role of Subsidies in Present

question 27

Essay

What is a subsidy? Describe the role of subsidies in present -day natural resource management.

Explain the difference between marginal social benefit (MSB) and marginal social cost (MSC).
Analyze scenarios to determine socially optimal levels of public goods and externalities.
Describe the concept of a Pigouvian subsidy and its application for external benefits.
Understand the implications of technology spillover in relation to positive externalities.

Definitions:

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