Encouraging Firms to Increase Production Via a Subsidy Will Tend

question 91

Multiple Choice

Encouraging firms to increase production via a subsidy will tend to be socially optimal when:

• A)the firms are producing necessities
• B)there is excess supply in the market
• C)the firms output is associated with large technology spillovers
• D)the market equilibrium output level is greater than the social optimum

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Definitions:

Promotion Program

A organized effort by a business to increase awareness, sales, or engagement with its products or services.

Four Ws

A framework often used in project planning and reporting, referring to Who, What, Where, and Why, detailing the parties involved, activities, locations, and reasons respectively.

Budget

A financial plan for a defined period, often one year.

Hierarchy of Effects

A model describing the stages a consumer passes through in the process from unawareness of a brand to purchasing it, including awareness, interest, desire, and action.