What is the impact of a production subsidy provided to a producer competing with imported goods?

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It does not need government tax revenue for funding.It causes an identical deadweight loss in welfare as an import tariff or quota.It results solely in deadweight loss due to consumption changes.It leads exclusively to deadweight loss arising from protectionist effects.

Explanation

A production subsidy to import-competing producers causes deadweight loss primarily through its protective effect, unlike tariffs or quotas which may cause both consumption and protective effects. Therefore, the deadweight loss is associated only with protection, not consumption.