Suppose that firms are NOT owned by consumers.than


Suppose that firms are NOT owned by consumers. 

Let s denote the size of the per-unit subsidy/tax given to the firms. Let positive values of s denote subsidies, and negative values of s denote taxes. 

 What is the value of s that maximizes total consumer well-being? 

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Business Economics: Suppose that firms are NOT owned by consumers.than
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