Consider a competitive firm with a total cost function given by TC(q)=q^2/1000. Suppose that, in order to incentivize higher production, the government decides to refund firms for their cost of producing the FIRST q units produced, up to 1000 of them.
What is the LARGEST market price at which the policy actually has an impact on the amount supplied by the firm (in comparison to the free-trade situation in which no such refund is present)?