Sunday, February 12, 2012

A debate is occurring among several economics students from your class over whether Big Macs from McDonald's a

A. Daphne: "Big Macs are a public good because they aren't rival in consumption, since my consumption still leaves plenty of Big Macs for everyone else."



B. Freddy: "Big Macs are a private good since they are neither rival in consumption nor excludable."



C. Bill: "Big Macs are definitely a private good because you can't eat them unless you pay for them and, when I eat one, that's one less for everyone else."



D. Velma: "Big Macs must be a public good since they are sold out in the open, without any limits placed on their sale by government."

A debate is occurring among several economics students from your class over whether Big Macs from McDonald's a
Well it looks to be C.



Because D mentions government intervention which really is not relevant in this case.



By saying B you aren't saying anything at all. Along the lines of saying "The car is not blue and it is not red" (Exclusions are made, but the answer isnt stated).



A is incorrect because the amount of Big Macs available are "a lot" but not to the point of "infinite".



So the logical answer is C - because although it leaves a lot for others to consume, that particular Big Mac can't be eaten by anyone else.



A good example is a road: just because I use the road doesnt mean that you can't use it after me. Whereas if I have a big mac and i eat it, you cant eat it after me.
Reply:Well I would say "C"

C++

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