(28)Suppose that the government subsidizes employment. That is, the government pays the firmsunits of consumption goods for each unit of labour that the firm hires.

In the presence of the subsidy, we observe that

(Show and explain your workgraphicallyi)

a)

the cost curve and the revenue curve shift down

b)

the cost curve shifts up and the revenue curve shifts down

c)

the cost curve shifts down and the revenue curve stays the same

d)

the cost curve and the revenue curve shift up