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- they are expensive (higher taxes)

- they may encourage inefficiency by relying more in the subsidy money

- it is difficult to decide on who may receive a subsidy

- they can create a production surplus which may end up as waste.

- they encourage new entrants into the industry even when demand does not require these.

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15y ago
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12y ago

they are highly expensive

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Q: What are the Disadvantages of subsidies?
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