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Purchase of a big mac creates no externalities

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Reference no: EM132445014

Purchasing and consuming food does usually not create an externality.

However, suppose you arrive at a 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 the service is slow and you decided to have a Big Mac each of those 10 people behind you must wait in line an additional 2 minutes.

Is it still correct to say that your purchase of a Big Mac creates no externalities? Might there be a justification here for the government to intervene in the market for Big Macs?

Reference no: EM132445014

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