6.5 The fact that each of the citys 60,000 residents is willing to pay 0.00005 cent for...
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6.5 The fact that each of the city’s 60,000 residents is willing to pay 0.00005 cent for each bottle removed means that the collective benefit of each bottle removed is (60,000)(0.00005) 3 cents. So the city should set the redemption price at 3 cents, and from the supply curve we see that 15,000 bottles per day will be recycled at that price.
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