Macroeconomics 9th Edition by David Colander

Exercise 43

In the 1990s, Germany passed a law requiring businesses to take back and recycle all forms of packaging. large group of businesses formed a company to collect and recycle these packages.ts costs are 4.5 cents per pound for glass, 9.5 cents per pound for paper, and 74 cents per pound for plastic.his accounts for a recycling cost of about $100 per ton for glass and $2,000 per ton for plastic; the average recycling cost of paper is $500 per ton. developing country has offered to create a giant landfill and accept Germany's waste at a cost of $400 per ton, which includes $50 per ton sorting and transport costs and a $350-per-ton fee to be paid to the developing country.
a.Should Germany accept this proposal
b.Will the proposal benefit the developing country