Per unit subsidies are intended to help firms produce more of a good to reach __________, where the price equals marginal cost.

Per unit subsidies are financial support given by the government to firms for each unit of a good they produce. This helps lower the cost of production, encouraging firms to produce more of that good. When firms produce more, they can reach a point called equilibrium, where the price of the good matches the cost of producing one more unit, known as marginal cost. For example, if a farmer receives a subsidy for each bushel of corn they grow, they may choose to plant more corn because the subsidy makes it cheaper to produce. This leads to a better balance in the market, benefiting both producers and consumers.