Why do you think there is a need for subsidies in the issue of externalities? Why...

Why do you think there is a need for subsidies in the issue of externalities? Why is competition seen as a positive factor in a market economy?

Expert Solution

ANS : if most important Subsidies involve the government paying part of the cost to the firm;because this reduces the price of the good and should encourage more consumption. as well as A subsidy shifts the supply curve to the right and can be justified for goods which offer benefits to the rest of society.

if most probability Competition has a positive impact, not only on the well being of consumers, as well as but also on a country's economy as a whole. Competition the productivity andcompetitiveness of the business sector and promotes dynamic markets and economic growth.

Rahul Sunny answered 2 years ago

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