Multiple Choice
Which of the following arguments is not generally made to justify farm subsidies?
A) The "family farm" is an American institution that should be protected and nurtured.
B) Agribusiness firms need subsidies to achieve economies of scale.
C) Farmers sell their output in purely competitive markets but must buy inputs from imperfectly competitive firms.
D) Farmers cannot fully insure themselves against the risks unusual to farming, such as floods, droughts, and pests.
Correct Answer:

Verified
Correct Answer:
Verified
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