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Business, 11.03.2020 22:23 becksss2714

Suppose planting rose bushes creates a positive externality equal to $5 per bush. Further suppose that the government offers a $3 per bush subsidy to planters. Which of the following is correct?a. The current subsidy is the ideal corrective subsidy. b. The current subsidy is greater than the ideal corrective subsidy. c. The equilibrium quantity is greater than the socially optimal quantity. d. The equilibrium quantity is less than the socially optimal quantity

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