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Government subsidy solution

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Reference no: EM131217641

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:

  • Explain basic principles of profit maximization.
  • Apply cost principles to business problems.
  • Identify and explain the problem of sustainability in business decisions.

Weekly Expert Video of the Week:

https://www.youtube.com/watch?v=iViIC3A3rr8

Reference no: EM131217641

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