Answer:
A pigouvian subsidy leads to a socially efficient outcome by raising individual's marginal benefit from consumption
Explanation:
A pigouvian subsidy is a subsidy that is used to encourage behaviour that have positive effects on others who are not involved or society at large. Behaviors or actions that are a benefit to others who are not involved in the transaction are called positive externalities. This is closely related to the idea of a pigouvian tax.
