Governments can use subsidies ________. A) as a means of ...

[RYAN BANYAN]

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?

[atrochim]

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]

Thanks for the timely response, appreciate it

[essyface1]

Gracias!