Subsidies do not help a producer to maintain a consistency in their levels of production.
What are subsidies?
Subsidies can be referred to as the incentives for the purpose of promotion of production and distribution activities, generally granted to the less or underprivileged sections of the society.
Subsidies are largely granted by the government or such equivalent authorities to keep the prices of commodities lower to overcome the higher costs, and might help to improve the quality of production.
Hence, option D does not support the argument of subsidies.
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