However in the face of high price junk food, people will consider more when they want to buy them. Naturally ,the purchase of junk food will be decreased. There are excess sugar ,fat, salty and additives in the junk food that is easy to lead to obesity. Eating less junk food will decrease the rate of obesity . Junk food will damage our red blood cells.
People should not be able to get this way so easily, the number of people affected should be lower. Their diets consist of bad food because that is what is accessible to them on short notice at a low price. While we think eating fast food once in a while won’t hurt, little to we know it’s addictive. People affected by obesity can tell you this because there constant return to the grease is what initially hurt them. This high intake of fats and sugars can also lead to diabetes.
The MPB is higher than the MSB and the difference between the two is the negative externality. From a social point of view the MSC should be equal to the MSB (decrease in consumption), reaching an optimum equilibrium in which there is no negative externalities. Moreover we can see the welfare loss provoked by the overconsumption of fast food. The government wants to solve this market failure situation by applying an Ad valorem indirect tax of a 2% on junk food that would provoke a decrease in the consumption. The tax is an extra cost for suppliers and so they will decide to decrease the amount of junk food supplied moving the supply curve to the left.
And it is complex to make the Planet Preserve product the bestselling product in international market. The Planet Preserve business needs more experience and skills, knowledge to become mature enough to come in international market. First Planet Preserve business should target to earn profits and money from domestic market because when you export the product in international company, the product will become more expansive for the customers in new country due to sales tax and other commissions.
But environmental factors such as the production of these foods and economical factors such as the food industry’s earnings should also be taken into consideration regarding the problem of should fast foods be banned, limited or allowed in society? Currently the fast food industry in USA makes around 160 billion US dollars per year, along with around 3.7 million employees. Because of the fact it is such a huge industry, it has a lot of economic influence. This means that the decisions regarding this industry would have a huge impact on the economic system. Ever since the major growth of the fast food industry in 1970, for the past 30 years, the childhood obesity rate has quadrupled.
This gives McDonalds more time to focus on more important matters like its marketing campaign which is very important to any business. McDonalds has huge upper hand on competitors because they have partnerships with the best brands such as: Coca cola and many more. A huge strength for McDonalds would be their advertising section. They have a budget off $2 billion set aside every year this is more than most fast food restaurants chains
In addition, Peru and Ireland planned to start a junk food tax. According to a recent study a junk food tax is aimed to reduce the number of people that addicted to eat junk food. Unfortunately, The disadvantages of junk food tax that people going to pay for eating a junk food which can consider as a wasting of the money for some people, but it will be an advantage point at the same time because that eventually will lead to
Junk food may not be the healthiest decision someone could be making. Firstly, eating junk food can lead to serious health problems such as weight gain and cardiovascular diseases. Because junk food is high in calories and contains fats and sugars, it may cause you to increase your weight quickly. For example, if you eat just one ounce of potato chips, you will get 154 calories. Then, if you overeat them, you are at increased risks of developing cardiovascular problems, high blood pressure, and type two diabetes, elevated cholesterol according to the Heart, Lungs, and Blood Institute of the United States.
3) New Entrants or Threat of New Entrants: The threats of new entrants competing with CSD producer (Coke, Pepsi) and Bottler are very low. Coke and Pepsi have acquired very high brand quality and high level of customer around the world by spending large amount of investment on their marketing and advertisement. This brand loyalty and loyal customer gives Coke, Pepsi and their bottler advantage in the market from economies of scales, access to distribution channels and favorable government policy. Carbonate Soft drink industry (producer and bottler) requires very large investment for infrastructure, marketing, advertisement and promotion. There is very high level of capital requirement for plant, equipment, patent, research, marketing and advertising.
is not so successful as Coca-Cola but it still be well known with its major product, Pepsi. One of PepsiCo.’s competitive advantage is its variety product line. In 2001, PepsiCo. stated in 38 percent more revenue than Coca-Cola despite it was stated $16 billion sales in soft drinks. This is because besides of compete with Coca-Cola in soft drink market, Pepsi also introduce some snacks and breakfast, such as Quaker Oat, Lay and others (Business Insider, 2012).