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In this assignment, you will integrate your knowledge from all three weekly outcomes. After reviewing the "From the Expert" video this week, consider the problem of the apple farmer. In your own words, explain the farmer's optimal solution in the free market using marginal cost analysis. How might this solution be suboptimal from society's perspective? Explain who benefits and is harmed under the free market solution. Explain who benefits and is harmed under the government subsidy solution? Using economic analysis and the guiding principles of sustainability, justify which solution is best.
Weekly Outcome:
Weekly Expert Video of the Week:
https://www.youtube.com/watch?v=iViIC3A3rr8
41) Tradeoffs involve an exchange of one thing for another because resources are limited and can be used in different ways.42) The notion of opportunity cost allows the measurement of tradeoffs.
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