The downside of having the government pay the movie studio to cover the loss is this:
- It will negatively affect the government's budget and might cause other movie producers to feel entitled to government aid when they have a movie flop.
<h3>Why should the government not pay the movie studio to cover the loss?</h3>
The government should not pay the studio to cover the cost because it is not a national project.
The government is designed to manage the public's funds and not the individual investments of people. The producer of the movie is an individual who does his or her normal business.
Just as the government will not be directly involved in the personal losses of any citizen, they are not also required to refund the Star Wars franchise.
Learn more about the Star Wars franchise here:
brainly.com/question/17592997
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