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Assume a Company Has a Cafeteria Where It Lets All

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Assume a company has a cafeteria where it lets all its workers eat without making them pay up front. Instead, at the end of the month the total cost of eating at the company cafeteria is added up and divided by the total number of workers. This amount is then deducted from each worker's paycheck. Explain how this practice may lead to a negative externality.


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