Unit pricing communicates that a higher level of waste services is associated with a nonzero marginal cost of production.

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Unit pricing is a pricing system that charges customers based on the quantity they use or consume rather than a flat rate. This means that customers who produce more waste will be charged more than those who produce less. The nonzero marginal cost of production refers to the additional cost incurred by the waste company for each additional unit of waste produced. Therefore, by using unit pricing, customers are made aware that there is a cost associated with producing and managing waste, which can serve as an incentive for them to reduce their waste and recycle more.

Unit Pricing Communicates That a Higher Level of Waste Services