Answer to Question #238576 in Economics for Vasim

Question

it is believed by some of the economists that once of technology is found profitable and is widely adopted subsidies be phased out accept refute the above statement

Answer 1

If the proposed technology turns out to be profitable and will lead to an increase in the value of the enterprise's profit to the average level for the economy, then subsidies can be canceled only in the case when this product has no social value. For example, if this is the production of insulin, then subsidies cannot be canceled, and if this is the production of a less significant product, then it is possible.