A corrective subsidy induces the ________ to the socially optimal ...

[V@ndy87]

A corrective subsidy induces the ________ to the socially optimal level.
 
  A) consumers of a negative externality to increase the quantity consumed
  B) producers of a negative externality to increase the quantity produced
  C) consumers of a positive externality to increase the quantity consumed
  D) producers of a positive externality to reduce the quantity produced

Question 2

Suppose it costs a farmer 1.00 to produce 1 unit of corn, 2.10 to produce 2 units of corn, and 3.30 to produce 3 units of corn. What's the average cost of producing 3 units of corn?
 
  A) 1.00
  B) 1.10
  C) 2.10
  D) 3.30

[parshano]

Answer to Question 1

C

Answer to Question 2

B