3) Friedrich Hayek, the man quoted at the start of chapter 3, is an Austrian economist who won a Nobel Prize in economics. He argued that government intervention is difficult to contain. Suppose central planners have decided to financially support children with food vouchers, free day care, and public school. a)What problems might this create? b) How might this lead to further interference by central planners into family choices?

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A:

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Q: Figure 3-1 Price (dollars per unit) 22 25 24 18 14 13 884 16 25 MC AVC AC MR

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Q: 3

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A: Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a…