The problems of the Colombian countryside are more than known: poverty, insecurity, high costs of inputs and transportation, as well as unequal competition against developed countries, which have agricultural subsidies and have adequate infrastructure and technology for this sector . Based on the above, it is worth noting that Colombian farmers sell their products at very high prices. However, large merchants and super markets buy these products below the equilibrium price, thus creating an imbalance in the agricultural market.

a) Identify the moral hazard. Discuss your answer b) What are the market signals? c) Why did the market fail? d) What is the externality? And what type of externality is it?