Assume a positively sloped, short-run supply curve in Figure 19.3 and a constant $5 per unit marginal

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Assume a positively sloped, short-run supply curve in Figure 19.3 and a constant $5 per unit marginal external benefi t. Show what happens with a $5 subsidy given to producers.

Who gains the benefi ts of this policy?image text in transcribed

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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