to 18. French Farmers Fret Over Subsidies in Post- Brexit EU Budget Talks French dairy and crop farmer Jean-Claude Pette relies on European Union subsidies to keep his 200-hectare farm afloat. "Unfortunately, if you look at the prices we sell our produce for today, we need those subsi- dies to survive," says Pette. 16

a. Why are French dairy farmers subsidized?

b. Explain how a subsidy paid to dairy farmers affects the price of milk and the marginal cost of producing it.