Are there concentrated benefits in the situation

Reference no: EM132181618

Question: As part of a plan to subsidize avocado production, farmers suggest that the costs of a subsidy should be paid by grocery-store owners (who will presumably benefit from higher sales of avocados). Are there concentrated benefits in this situation? Are there diffuse costs? Is there a collective-action problem? Explain your answer.

Reference no: EM132181618

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