Is the following statement true or false? Evaluate.

"Although taxpayers foot the bill for provincial water sold to the farmers at subsidized prices, they also eat the crops grown with that water. Because the crops are cheaper due to the subsidized water, taxpayers would get back exactly what they put in, and so there is no waste from having subsidized water for farmers". [HINT: Consider a constant cost industry. Please use at least two diagrams, one of a representative consumer, the other of the mar- ket.]