Why are there concentrated benefits in this situation


Problem

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.

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: Why are there concentrated benefits in this situation
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