Chap006.8 - The Supply Curve of Container Recycling...

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8 Chapter 6: Perfectly Competitive Supply Slide 43 Applying the Theory of Supply ± What is the socially optimal amount of recycling of glass containers? z 60,000 citizens would pay 6 cents for each container which equals marginal benefit z The local government pays 6 cents/ container. z The optimal quantity occurs where marginal costs = marginal benefit = .06. Chapter 6: Perfectly Competitive Supply Slide 44 The Supply Curve of Container Recycling Services for Burlington, Vermont Number of containers recycled (1,000s of containers/day) Redemptions price (cents/container) 61 0 1 3 1 6 6 3 2 1 1.5 15 Market supply curve of glass container recycling services The optimal quantity of containers is 16,000/day. Chapter 6: Perfectly Competitive Supply Slide 45 Applying the Theory of Supply ± Will all containers be removed from the environment at $0.06/container? Chapter 6: Perfectly Competitive Supply
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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