Question: Can I please get some help on this question? The attached question is all the information provided. Thank you! Text Question 2.8 i; Question Help
Can I please get some help on this question? The attached question is all the information provided. Thank you!

Text Question 2.8 i; Question Help Q If a specic subsidy (negative tax) of s is given to only one competitive rm, how should that rm change its output level to maximize its prot, and how does its maximum prot change? Let the market price be p, the marginal cost of production (prior to the subsidy) for the rm be MC, and the subsidy be 5. To maximize prot with the subsidy, the rm should 0 A. increase its production until p =s. O B. decrease its production until p = MC + s. O C. not change its level of production. 0 D. increase its production until p = MC. 0 E. increase its production until p = MC - s
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