Economic Reasoning Paper

The True Cost of a Burger

Initially, consumers would sue fast food operators as a result of their products which led to considerable weight gain. In 2005, the House of Representatives passed an act which forbade consumers to sue the fast food producers. The costs incurred in buying fast foods is extremely high, while they are in the long run (in the long run?), harmful to the health of many consumers. The reality is however different. Financial and economic costs are under the control of individuals themselves. In the event that consumers decide to consume more and more of burgers, it is not the fault of the businesses that consumers bills increase and their health deteriorates.

Whatever is paid for purchasing a cheeseburger is the price of the commodity. (I am not sure what you are trying to say here) This is not the cost of the commodity. It is not the cost which is incurred by the producers and the marketers of the good. It comprises of the sum of all costs; both true and the actual price on the good(Bitman, 2014). Consumers end up catering for the prices of everything that happens along the production process. This is what makes the costs of the commodity more expensive. These costs include; marketing costs, advertising and distribution costs.

In every commodity, there are costs which are borne by producers while others are externalities. They end up falling on consumers. (What do? The cost? or the externalities?) These costs are not represented in the price of a good. If the cheeseburger becomes wrapped in a piece of paper, you unwrap and throw it along the way. This paper is collected by a worker and put in a trash can the cost of that act is an externality by itself. Consumers have to pay for this cost. (Sentence is to short) By including the cost of the eternality (Externality?) in a good, the true cost is arrived at eventually. (the end cost of the product is higher then the original cost without externalities) This way, externalities may be beneficial but highly costly to the general consumers.

Everything produced has externalities. The article goes other examples of wind turbines. They kill birds and may spin office. (Probably combine these into one sentence (Same idea). "Everything we produce creates externalities, in NAME ARTICLE it goes on the explain the problems with wind turbines,one of the leading sources in clean energy, is that they have a chance of killing migrating birds) At the same time, they make noise which is entirely a disadvantage to the outside party. (outside party? Surrounding neighborhoods?) Cheese burgers bear the full cost of anything which makes them, in fact Americans eat more than 16 million cheeseburgers in a year, the cost of the externalities of eating them and creating them are huge. The government has set up policies and uses with regards to externalities which end up causing harm to the community (How so? What kind of harm?) (Bitman, 2014). Polluter’s tax is charged on organizations which release carbon and greenhouse gases to the atmosphere.

The externality in this case, is cardiovascular diseases. In the long run, the majority of consumers end up suffering. With such government regulation, the organizations will be keen in what they produce, the businesses will not take part in activities which lead to environmental pollution and causing harm to consumers (Bitman, 2014). In the end companies will avoid paying both production and polluters tax which increases their cost of production. I therefore, agree with the government policy as it is, it is appropriate for all groups.