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Essay on ECONOMICS COST COMPONENT AND MARKET STRUCTURE COMPONENT FOR THE PRODUCT OF MCDONALDS HAMBURGERS
Three issues that will affect cost of producing Mc Donald’s hamburger
The three basic issues, which can affect the cost of producing the Mc Donald’s Hamburger, are the environmental costs, health issues and the transportation costs. Recently there have been a lot of issues raised on Mc Donald’s causing damage to the environment by deforestation. Many environmentalist claims that the McDonald’s is using beef which is from the cattle that is raised on the land, which was deforested. Other than this there have been many law suits filed against Mc Donald’s that it uses beef fat in its French fries and fat of other animals which cannot be named and additives in the French fries and the buns which are dangerous for the human health and can cause obesity and high level of cholesterol.
Thirdly as Mc Donald’s claim that the beef it uses is imported so due to the implementation of the WTO and the countries own decision sometimes the transportation costs and the trade barriers are also high. Now the reason that I have these three issues major preference in the effecting the costs of the hamburger is the reason that beside these the rest of the overhead and fixed costs are calculative like the electricity costs etc but these are some of the concerns for the Mc Donald’s as it is constantly under inspection from various environmental agencies and can raise these sensitive societal issues which will effect the cost price of the hamburgers drastically if the case is proven true. (Ball, S. 1992)
Impact of technology
There were several questions raised on Mc Donald’s hamburgers on their packaging so in a major source reduction step endorsed by the task force, McDonald's is completing a switch from polystyrene foam clamshells to paper-based wraps for packaging its sandwich items....
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