Microeconomics Essay Example | Topics and Well Written Essays - 2000 words - 3

Microeconomics - Essay Example On the other hand, a rationale requires healthy debate in the process of evolution concerning the operating conditions of the sector. The Canadian government intervention in the agricultural sector, specifically in the livestock sector has brought forth numerous benefits and consequences as outlined below. The intervention occurs because of imperfect market, in order to provide public goods and services like the web extension reports and crop information. However, the private market can fail to offer sufficient public goods or services, thus result to excluding the some people from consumption of goods and services. The other reason relates to extremities such as high costs of public health due to poor nutrition. In this case, the occurrence of an externality happens in situations when the costs benefits are not related to decision makers. The other reason relates to the market power and monopolies in situations when the firm influences market prices. For example, the cooperative has offered the necessary privileges for offsetting the concentration of power to the buyers or service providers like railroads. Moreover, the imperfect and asymmetric information, whereby there is uncertainty relating to the products attribute, and in other situations processors might have more information concerning a required attribute compared to the supplier. The other reason relates to the labeling requirements, whereby the government intervention helps to solve private market imperfections. In this case, the intervention of based on offsetting economic distortion and it is created by the actions of the foreign party. Moreover, the subsidized exports in a  country are a determinant of the returns in the other, whereby the economic augments for the government intervention is harmonized in standards of the trading partners. There are justifications within the economic situations that government intervention into the agricultural sector is premised on a philosophy,