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Market Failure: Fast Food Industry

Minhal Shamsuddin & Jee Won Lee's project

Minhal Shamsuddin

on 11 November 2012

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Transcript of Market Failure: Fast Food Industry

Negative Externalities of Production Environmental Damage

Developing countries' economies Market Failure: Evidence Existence of Externalities
Poor work performance
Health issues + higher taxes
Environmental damage Positive Externalities of Production Quick alternative for food

Provides perpetuate jobs Policy Responses Imposing a tax - fat tax Suggestions Proximity to schools, workplaces
"Happy Meals"
Cattle rearing
Subsidies Jee & Minhal Market Failure: The Fast Food Industry Negative Externalities of Consumption Government Responses Thank you Over-supply of Demerit Goods
Poor nutritional value
Demand always high Imperfect Information
Advertisements Positive Externalities of Consumption Charities - Ronald McDonald House Charities tax that charges on fattening foods, beverages or individuals. tax that charges on fattening foods, beverages or individuals. Advertisements to demote the product

Advertisements to educate the costumers Poor work performance -> less output -> worse economy

Health problems -> more need for medical care -> taxes
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