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It's called subsidizing a positive externality, and it actually creates utility and eliminates deadweight loss. It's not "government welfare", it's the economi
by sblawrie 11y ago
It's called subsidizing a positive externality, and it actually creates utility and eliminates deadweight loss. It's not "government welfare", it's the economically wise thing to do!
http://www.economicshelp.org/micro-economic-essays/marketfailure/subsidy-positive-ext/ http://www.economicshelp.org/micro-economic-essays/marketfai...