While Shafkat got the idea, he is not too sure how to implement it, not what level to set and has asked your help. These are the facts:

The damage is estimated at 200,000$ for the year. This accounts for loss of business, environmental damage,

Estimated 10,000 bottles are left on the beach for the year. (these 6 individuals know how to party)

The cost to process empty bottle is 5 cents per bottle. (after it has been picked up, to get recycled - or simply thrown in the trash). This cost is borne by the city.

[1 pts] Given the current deposit of 10 cents, 5 cent return policy. How much money are these 6 individuals (which produce 10,000 bottles) forgoing by not returning the bottles?

[1 pts] If the city wanted to pay someone to pickup the bottles, how much money could if offer someone given the deposit revenue (of those 10,000 bottles)?

[1 pts] Since no one is actually picking those bottle up presently, is it credible that the city could pay someone what you found in b)?

[2 pts] What would be the maximum the city would be willing to pay per bottle given the cost to the business's and how refund/deposit schemes work.

[2 pts] The city, is thinking that, given the scale of the impact to the town, it should increase the deposit that it retains from the sale of beer. How much of a deposit should it ask for given that it wants to recuperate the 200,000 in damage but also does not want to pay out of pocket for this option assuming it sold in total 5 million bottles.