The Bahamas paid a "very high price" for not using non-tariff barriers to prevent foreign producers from dumping low-quality food products into the country, a practice that has driven Bahamian farmers out. According to the article, the Bahamas' food security shortfalls and inability to feed itself have made food nearly affordable for many segments of society, implying that poor policy decisions of previous administrations contributed to the demise of agriculture. The industry's contribution to Bahamian GDP has fallen to less than 1%, compared to its contribution of 5-6 percent to Bahamian GDP in the 1970s and 1980s. 1. Identify the type of market failure being discussed in the article and discuss why market failure occurs in this scenario 2. Suggest a relevant government policy that would yield the efficient outcome and carefully explain the process through which the implementation of the government policy will lead to the optimal outcome. 3. How will the imposition of the chosen government policy impact consumer surplus, producer surplus and total surplus in this scenario?
The Bahamas paid a "very high
1. Identify the type of market failure being discussed in the article and discuss why market failure occurs in this scenario
2. Suggest a relevant government policy that would yield the efficient outcome and
carefully explain the process through which the implementation of the
government policy will lead to the optimal outcome.
3. How will the imposition of the chosen government policy impact
surplus
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