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Use a diagram to show how provision of a public subsidy to

1 Why might leaving provision of the arts entirely to the private sector lead to sub optimal resource allocation? Use a diagram to show how provision of a public subsidy to the arts might restore optimal allocation and explain why achieving this aim might be difficult in practice.

2 Should children's playgrounds be provided free of charge?

3 Should opera be subsidized?

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Microeconomics: Use a diagram to show how provision of a public subsidy to

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