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The chapter states that your consuming a Big Mac does not create an externality. But suppose you arrive at your favorite 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 2 minutes. Is it still correct to say that your consuming a Big Mac creates no externalities? Might there be a justification here for the government to intervene in the market for Big Macs? Briefly explain.

    The chapter states that your consuming a Big Mac does not create an externality. But suppose you arrive at your favorite 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 2 minutes. Is it still correct  to say that your consuming a Big Mac creates no externalities? Might there be a justification here for the government to intervene in the market for Big Macs? Briefly explain.
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Macroeconomics
Macroeconomics
R. Glenn Hubbard,… 4th Edition
Chapter 5, Problem 6 ↓

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An externality occurs when a person's actions have unintended consequences on others that are not reflected in the market price. These can be positive (beneficial) or negative (harmful).  Show more…

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The chapter states that your consuming a Big Mac does not create an externality. But suppose you arrive at your favorite 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 2 minutes. Is it still correct to say that your consuming a Big Mac creates no externalities? Might there be a justification here for the government to intervene in the market for Big Macs? Briefly explain.
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