If the government subsidizes firm output at rate s, then the profit maximization condition is, a MPN = w s. (b) MPN = w (1 + s). (c) MPN = w. (d) (1 + s) MPN = w. 7. If the government taxes firm output at rate t < 1, then the consumer's optimality condition is, (a) MRS`,C = w. (b) MRS`,C = w (1 t). (c) (1 t) MRS`,C = w. (d) MRS`,C = w t.