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A. If only one government subsidizes its firm, what is the effect on price and quantities in the aircraft manufacturing market? [40 points] B. What

A. If only one government subsidizes its firm, what is the effect on price and quantities in the aircraft manufacturing market? [40 points] B. What happens if both governments subsidize their firms? [40 points] C. What equilibrium concept is used in your responses to A and B above? In the case of two firms, which variable appears in the vertical axis, and which appears in the horizontal axis, when each airline chooses to find out how many passengers to carry? [20 points]

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