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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] In your answer, please refer to Figures from the textbook, in which case you should indicate specifically which ones. Discuss in words what is happening in the items above. Make sure to identify, in each item, the equilibrium points and their moves, with your economic explanations

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