Externalities Assignment | Homework For You

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December 10th, 2019

It has been argued that your consuming a Big Mac does not create an externality. But suppose you arrive at your McDonald’s at lunchtime and get in a long line to be served. By the time you reach the counter, there are 10 people in line behind you. Because you decided to have a Big Mac for lunch – instead of, say, a pizza – each of those 10 people must wait in line an additional 2minutes.

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Or suppose that after a lifetime of consuming Big Macs, you develop heart disease.Because you are now over age 65, the government must pay most of your medical bills through the Medicare system. Is it still correct to say that your consuming a Big Mac created no externalities? Might there be a justification here for the government to intervene in the market forBig Macs? Explain. Get Economics homework help today

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