Buy custom Can government intervention be effective in correcting market failures associated with alcohol?
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Business
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| Number of pages / Number of words: |
7 / 1693 |
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Above-average medical costs will be met partly from public funding. For this reason alone there should be a public interest in restricting use of alcohol. Decision makers do not take into account the cost imposed on society and others as a result of their decision
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money or time etc as well as fixed costs like transport costs to venue, also the opportunity cost of all the resources used up by those costs. The other costs include external marginal costs; these might include time off work, health costs etc. Both costs added together produce a marginal social cost, the cost to society as a whole incurred by alcohol usage:
Private Marginal Costs (PMC) + External Marginal Costs (EMC) = Social Marginal Cost (SMC)
Given the ‘market-failure’ reasons for seeking to restrict alcohol consumption what are the governmental policy options for regulating alcohol use?
Information: I propose the government should correct market failure, providing accurate information about the negative consequences of consuming alcohol and to restrict advertising that emphasizes the inaccurately optimistic positive consequences of consumption...
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Can government intervention be effective in correcting market failures associated with alcohol?
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