The figure above shows the market for milk in Cowland. A subsidy paid to producers of $1 per gallon of milk is introduced. If there are no external costs and no external benefits, the quantity of milk sold is
A) greater than the efficient level of output.
B) less than the efficient level of output.
C) 100 million gallons greater than the efficient level of output.
D) the efficient level of output.
A
Economics
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How and why did Europe set up its single currency?
What will be an ideal response?
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Refer to the information above. By accelerator theory, net investment will remain above zero in the long run only so long as
A) expected sales are greater than v* times the capital stock. B) replacement investment is above zero. C) expected sales keep rising. D) expected sales do not fall. E) actual sales fall below expected sales.
Economics