Asked by Bryan Cakir on Jun 12, 2024
Verified
The city of Econoville currently charges a fee of $0.50 to residents for each 50 gallon can of trash the city garbage service collects from their residence. A 50 gallon can of recyclable trash costs a resident $3.50 to be collected. The marginal social cost of garbage disposed is: where is a 50 gallon drum of garbage disposed. The marginal social cost of garbage recycled is: The marginal benefit function of garbage removed from residences is: Given the payment plan for garbage disposal, what level of garbage are the city residents disposing each year? How much will each resident recycle with this payment plan? Is this level of disposal and recycling efficient? Why or why not? What is the optimal level of garbage disposed and garbage recycled in Econoville? How can Econoville encourage residents to dispose and recycle the optimal amounts of garbage?
Marginal Social Cost
The cumulative expense incurred by society for creating one more unit of a product or service, encompassing both direct private costs and any external effects.
Garbage Recycled
The process of collecting, processing, and reusing materials that would otherwise be thrown away as trash.
Payment Plan
An arrangement between a seller and a buyer that allows the buyer to pay off a purchase over time in instalments.
- Achieve understanding of the concept pertaining to marginal external costs and benefits in economic endeavors.
- Examine the importance and consequence of public sector actions, such as imposing taxes and setting standards, in addressing market flaws.
- Gain an understanding of the economic framework of public amenities and programs, including those related to waste management and recycling.
Verified Answer
Learning Objectives
- Achieve understanding of the concept pertaining to marginal external costs and benefits in economic endeavors.
- Examine the importance and consequence of public sector actions, such as imposing taxes and setting standards, in addressing market flaws.
- Gain an understanding of the economic framework of public amenities and programs, including those related to waste management and recycling.
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