An argument can be made that the Government could improve consumer welfare by requiring companies to provide accurate information to consumers about their products. We already see this intervention by the government in the labeling requirements on food, warnings on packages of cigarettes, and prohibition of false advertising but do warning labels really deter consumers from eating or engaging in “unhealthy” behaviors? Should companies like McDonald’s be “required” to label coffee with the caution that the content is hot?In The News: Agricultural markets are often cited as exhibiting the characteristics of the perfect competition market structure. Does farming fit this model? What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer?
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