The video illustrates a couple of ideas:
1. From Chapter 2: subsidies destroy wealth, in this case, by encouraging activities whose cost is bigger than their benefit.
2. And from Chapter 20: If you make things safer, people take more risks.
We wrote a managerial economics textbook (Amazon, Barnes & Noble, Cengage) to teach students how to solve business problems (7 min. video). We started this blog to support those who use the book, and to keep up with developments in the field.
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