-Consider Figure 5.1.Suppose the Mexican government provides a subsidy of $200 per ton to its steel producers,as indicated by the supply schedule SM ?w?th s?bs?d??.
The total cost of the subsidy to the Mexican government equals:

Question

Quizplus · Accepted Answer

The total cost of the subsidy is calculated by multiplying the subsidy amount per ton ($200) by the quantity of steel produced. Assuming the quantity produced is 4 tons (as implied by the choice D), the total cost is $200 x 4 = $800.