Question

Natalie, an organic butcher, is a monopolistically competitive producer in the CR MSA. Show the market for Natalie in equilibrium. Suppose the CR chamber of commerce initiates a program to subsidize another local producer, Paige, who produces genetically modified beef. Show Paige’s market prior the subsidy alongside Natalie’s (two separate graphs). Show the effects of the subsidy in both markets and summarize with a nice intuitive explanation.

**This is all the information I've been given. The professor wants us to make the supply and demand graphs based off of this info only.

Answer 1

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