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.

Question

Quizplus · Accepted Answer

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.

Having a Refundable Deposit for Recyclable Material