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Asked Nov 8, 2019
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Explain why investment in agricultural R & D is a case of market failure

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Investment in agricultural R & D is a case of market failure as some of the research is unprofitable when done by private sector due to problem of appropriability that is the investors cannot create sufficient benefits for themselves to securitise the investment. Also, the transaction costs that is involved in having the farmers take a collective action in order to create i...

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