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Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 500 units and an efficient price of $150.00 per unit,
Assuming a product can be manufactured competitively without any externalities at an efficient quantity of 500 units and an efficient price of $150.00 per unit, what efficient quantity-price net subsidy combination would be consistent with a corrective subsidy for a positive externality?
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a 700 units, $100.00 per unit price net subsidy.
b 500 units, $150.00 per unit price net subsidy.
c 300 units, $120.00 per unit price net subsidy.
d 600 units, $160.00 per unit price net subsidy.
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