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.

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Aberlynn Derosier · Accepted Answer

Final Answer : B, Explanation :  Agribusiness firms seeking subsidies to achieve economies of scale is not a common justification for farm subsidies. Typically, subsidies are argued for on the basis of supporting small farmers, managing risks related to weather and pests, and dealing with market imperfections, rather than helping large agribusiness firms grow larger.

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