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Chapter 13: Q.4 (page 315)

The Junkbuyers Company travels from home to home, looking for opportunities to buy items that would otherwise end up with the garbage, but which the company can resell or recycle. Which will be larger, the private or the social benefits?

Short Answer

Expert verified

In this case, the social benefits will be larger than private benefits.

Step by step solution

01

Content Introduction

Only an individual or a business that consumes goods and services receives private advantages. Social benefits, on the other hand, are the sum of private advantages as well as positive externalities generated by such goods and services.

02

Content Explanation

When Junkbuyers Company purchases anything for resale, both the buyer and the seller are likely to benefit from the transaction; otherwise, the deal would not have gone forward. In addition, the company reduces the amount of waste it generates. It also allows homes to save money while also saving the city from having to deal with additional rubbish. As a result, the social advantages outnumber the private benefits.

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Most popular questions from this chapter

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