How could the u.s. government justify its decision to offer, Ask an Expert

Economics

Suppose the U.S. government (but not Europe) offers a $10 million subsidy but only if Boeing produces. assume this is a simultaneous move game and add the subsidy to the original payoff matrix given at the start of this problem.)

How could the U.S. government justify its decision to offer a subsidy to an already profitable and successful business? (Hint: is there any positive economic payoff for the government here?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M968434

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