Thursday, January 24, 2008

(Subsidized) Blueberry and Raisin Ice Cream

Suppose Rizal likes ice cream. So far he can always buy it from AP, the seller, at an inexpensive price. AP usually gets his ice cream material, --blueberries and raisins--, from mostly Aco and, for smaller amount, Ujang. Why Aco? Because he offers lower price than Ujang.

It turns out that Sjamsu, by taking, say, Hillary and Barack's money, subsidizes Aco's soybean blueberries and raisins that allows him to become major supplier.

Of course Ujang dislikes the idea, but the question is: Should Rizal and AP condemn Aco and Sjamsu for taking Hillary and Barack's money for lower price of blueberries, raisins, and henceforth, inexpensive ice cream?

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