Asked by Gurlivleen Singh on May 18, 2024
Verified
Having a refundable deposit for recyclable material:
A) raises the marginal private cost of disposal.
B) raises the marginal social cost of disposal.
C) lowers the marginal private cost of disposal.
D) lowers the marginal social cost of disposal.
E) does not affect disposal costs.
Refundable Deposit
An amount of money given as security for an item that is intended to be returned, with the promise of repayment.
Marginal Private Cost
The change in a firm's total costs that comes from making one additional unit, considering only private costs without externalities.
- Appreciate the economic rationale for waste management and recycling strategies.
Verified Answer
SS
Satya Srija AllamMay 22, 2024
Final Answer :
A
Explanation :
Having a refundable deposit for recyclable material raises the marginal private cost of disposal because consumers or businesses must pay an additional amount upfront, which they can only recoup by returning the item for recycling, rather than disposing of it. This makes disposal more costly from a private perspective, encouraging recycling or more responsible waste management.
Learning Objectives
- Appreciate the economic rationale for waste management and recycling strategies.