s.highline.edu/courses/1641130/ 05)> Discussions > Prices and Recycling ue Jul 1

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s.highline.edu/courses/1641130/ 05)> Discussions > Prices and Recycling ue Jul 19 This is a graded discussion: 10 points possible 13 Prices and Recycling When I put a newspaper, an empty can of soda or a glass bottle in the recycling bin, I assume that it will be recycled into another newspaper, can or bottle. But, will it? How is the answer to the question dependent on prices? And, how does the low proce of oil impact the level of recycling? This weeks discussion board will focus on a Planet Money podcast. Listen to the podcast, and then discuss whatever you found most interesting, surprising, confusing etc. You can get the episode, including the transcript here e Search entries or authcor Unread Subscribe h Reply

Explanation / Answer

Whether the items will be recycled depends on the cost of production and resale value of the recycled items in the market. If the cost of the factors of production, such as, oil, labor etc used in recycling the original products is low vis-a vis the price of the recycled material, then newspaper, empty can of soda or glass bottle in the recycling bin will be recycled into another newspaper, can or bottle.

If the price of oil is low, then cost of the factor of production will decline and any decline in the cost of the factor of production will increase profits of the firm and thus increase production of the firm and thus the supply curve of recycled materials will shift rightwards.

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