2007年3月12日星期一

New Article

http://www.allheadlinenews.com/articles/7006599170
I hope this is a more reliable source.

Extract:
"Prince Charles of England says MacDonalds Food Should be Banned". Even though the prince in england technically does not have any politial power, his opinions are still extremely influencial on government policies. The fast food industry has very high supply and demand, but the high demand has caused a negative externality, which is obesity. This is because socially beneficial demand curve is lower than the private beneficial demand curve. As a result, the government should proceed a couple of policies to control the demand curve, making it socially optimal.

MR. WELKER: I have a question, does obesity even count as a negative externality? because it influences one of the dealers in the market which is technically not a third person.... I am really confused, I will find you tomorrow to discuss this.

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