1.3 Market Failure Flashcards
1
Q
What can subsidies do to positive externality diagrams?
A
The gov could give a firm a subsidy so they can operate at MSB instead of MPB to correct market failure
🔱Microeconomics > 1.3 Market Failure > Flashcards
What can subsidies do to positive externality diagrams?
The gov could give a firm a subsidy so they can operate at MSB instead of MPB to correct market failure