Which of the following is a problem of subsidizing an industry to help it establish a world monopoly?

Question

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Subsidizing an industry to establish a world monopoly involves picking a specific industry to subsidize, which can lead to a nation choosing the wrong industry to subsidize (B). Additionally, if both the domestic firm and a foreign firm enter the market, the nation may end up subsidizing two money-losing firms (C). All monopolies create deadweight losses, but this is not specific to subsidizing an industry to establish a world monopoly and therefore is not the main problem addressed in the question (A).

Which of the Following Is a Problem of Subsidizing an Industry