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Author Question: Governments can use subsidies ________. A) as a means of increasing government spending B) when ... (Read 77 times)

RYAN BANYAN

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on: Jun 29, 2018
Governments can use subsidies ________.
 
  A) as a means of increasing government spending
  B) when they want to increase taxes
  C) to achieve an efficient outcome if there are external costs
  D) to achieve an efficient outcome if there are external benefits

Question 2

How do product development and marketing affect a firm in monopolistic competition?
 
  What will be an ideal response?


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atrochim

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

Product development and marketing have two effects on a firm. First, because these activities are costly, they increase the firm's costs and shift its costs curves upward. Second, they can increase the demand for the firm's products.


RYAN BANYAN

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Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it

amandalm

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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