3259EconomicsMedium
If the home country government grants a subsidy on a domestically produced good domestic producers tend to?
AIncrease their level of production
Bconsider the subsidy as a increase in production cost
CCapture the entire subsidy in the form of higher profits
Dreduce wages paid to domestic workers
Correct answer
A. Increase their level of production
Explanation
The correct answer is Increase their level of production.