Tuesday, July 29, 2008

Unit 1: Government action to overcome market failure: Trans fats in California

An interesting article from the BBC on banning trans fats in California

http://news.bbc.co.uk/1/hi/world/americas/7526624.stm

a) Using a diagram, explain what sort of market failure trans fats represent
b) Why has California taken this action?
c) To what extent do you think the action will reduce the market failure?

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