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The above figure shows supply and demand curves for butter. If the government provides a $2 per-unit subsidy, the subsidy generates a deadweight loss because
The above figure shows supply and demand curves for butter. If the government provides a $2 per-unit subsidy, the subsidy generates a deadweight loss because Group of answer choices the willingness to pay for the last unit is higher than the marginal cost both the willingness to pay and the marginal cost are positive the willingness to pay for the last unit is less than the marginal cost both the willingness to pay and the marginal cost are lower than at market clearing
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