Asked by Lunghile Abigail on Apr 25, 2024
Verified
Many states use container redemption programs to encourage reuse of glass bottles and other recyclable containers. Suppose a state has a current redemption program that imposes a 10-cent per container fee, and then the state increases the fee to 15 cents per container. What is the expected impact of this change on the optimal quantity of unredeemed (scrapped) containers?
A) Optimal quantity increases.
B) Optimal quantity decreases.
C) Optimal quantity remains unchanged.
D) We cannot determine the outcome of this policy change without having more information.
Redemption Program
A redemption program is a scheme where points, coupons, or other types of credit are exchanged for goods, services, or a monetary reward.
Unredeemed Containers
Items such as bottles or cans that are not returned for a deposit, often creating recycling or waste management challenges.
Fee Increase
An adjustment that results in the rise of charges or fees for services or goods.
- Examine the effects of recycling initiatives and container deposit charges on the diminution of waste.
Verified Answer
Learning Objectives
- Examine the effects of recycling initiatives and container deposit charges on the diminution of waste.
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