Suppose that the government of New York state promises to decrease taxes to a firm if it decides to stay in New York instead of moving to another state. This policy on the part of the state constitutes ________, to make the ________ of the firm remaining in New York.

Question

Answer

a command; marginal cost exceeds the marginal benefit

Answer

an incentive; marginal cost exceeds the marginal benefit

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an incentive; marginal benefit exceeds the marginal cost

Answer

a command; marginal benefit exceeds the marginal cost

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Suppose that the government of New York state promises to decrease taxes to a fi...

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