Question:
What are the Advantages of Subsides in the Market?
Author: eric_galvaoAnswer:
-Benefit of the Goods will be Internalised, and the Price of the Good is Reduced -Subsidies can lead to Changes in Preference and make Merit Goods more Preferable as its Cheaper -Positive Externalities are still Present - Wind Farms will keep on Reducing Pollution -Subsdies can make Domestic Industries grow to a point that it can Exploit Economics of Scale and be Internationally Competitive
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