Which of the following happens when a Pigouvian subsidy is provided?
A) The marginal social cost curve shifts upward.
B) The marginal private cost curve shifts downward.
C) The marginal social benefit curve shifts downward.
D) The marginal private benefit curve shifts upward.
D
Economics
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When total costs are greater than total revenue,
A) fixed costs must be high. B) a firm is suffering losses. C) a firm should shut down immediately. D) the firm must be producing on the elastic range of its demand curve.
Economics
Models that focus on factors other than changes in the money supply to explain fluctuations in real GDP are called
A) rational expectations models. B) real business cycle models. C) nonmonetary business cycle models. D) short-run macroeconomic models.
Economics