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16. Suppose that, at the same time, both the EU offers a subsidy of 20 for R&D to , and the US offers a subsidy

16. Suppose that, at the same time, both the EU offers a subsidy of 20 for R&D to , and the US offers a subsidy of 30 for R&D to B. As a result of these subsidies:

(a) both the EU and the US social welfare increase

(b) both the EU and the US social welfare decrease

(c) the EU social welfare increases and the US social welfare decreases

(d) the EU social welfare decreases and the US social welfare increases

(e) none of the above

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