Suppose That the Government of New York State Promises to Decrease

Multiple Choice

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.

A) an incentive; marginal cost exceed the marginal benefit
B) an incentive; marginal benefit exceed the marginal cost
C) a command; marginal cost exceed the marginal benefit
D) a command; marginal benefit exceed the marginal cost