Internalising a Positive Production Externality Through a Government Subsidy Will

question 6

Multiple Choice

Internalising a positive production externality through a government subsidy will cause the industry's supply curve to:

• A)remain unchanged
• B)shift down by an amount less than the subsidy
• C)shift down by an amount equal to the subsidy
• D)shift down by an amount greater than the subsidy

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