Law requiring paint manufacturers to recycle paint

Assignment Help Business Economics

Reference no: EM131091888

The State of Minnesota passed a law requiring paint manufacturers to recycle paint. Under current law, consumers of paint take unwanted paint to county or state recycling centers for disposal. Starting in the summer of 2014, consumers will be able to take unwanted paint to volunteer paint and hardware stores that will then send the paint to be recycled. Paint manufacturers will pay a hazardous waste fee to cover the cost of recycling. The state estimates this that 700,000 gallons of paint get recycled per year with another 500,000 gallons await recycling or end up illegally disposed. The state estimates this program will cost paint manufacturers about $5 million per year. In other states, the price of paint under such a program raises about $0.75 per gallon.

a. Under what demand and supply conditions (if any) will these new rules cost completely shift the entire cost onto the manufacturers of paint?

b. Under what demand and supply conditions (if any) will these new rules fail to shift any of the cost onto the manufacturers of paint?

c. If the new rules cause the market price to consumers to rise by $0.75 cents per gallon, does that mean consumers bear the entire cost of these new rules? Explain.

Reference no: EM131091888

Questions Cloud

Advanced business writing : Monash University has a website thate features a sample case study report along with comments to the student on the report. Click here to access the site.

Investigate its business communication processes : This work will involve you to select a business of your choice to investigate its business communication processes, e.g. KFC, Holden, Sports Girl, Supre etc. You are able to choose freely on a selected business that contains enough research and fo..

What is the break-even quantity : What is the break-even quantity? Hint: It is the point where the total cost to manufacture equals the total cost to purchase. The information below might also help. Please interpret your results. Meaning, what decision should you make based on if ..

Explain how the role of the advanced practice nurse differs : Explain how the role of the advanced practice nurse differs according to the site of care. Finally, explain how care should be facilitated for the patient in the case you selected based on the model used for the interdisciplinary geriatric teams a..

Law requiring paint manufacturers to recycle paint : The State of Minnesota passed a law requiring paint manufacturers to recycle paint. Under current law, consumers of paint take unwanted paint to county or state recycling centers for disposal. Under what demand and supply conditions (if any) will the..

Describe the four types of responsibility centers : What are the four major budgets of a health care organization? Briefly discuss each.

Blending or braiding of funds : Develop a list containing 3-5 examples of early care and education programs in your state or community that might use blending or braiding of funds. Examples of organizations likely include:

Products in the foreign country and gain : In global marketing, where corporations want to achieve a success in selling their products in the foreign country and gain more profits and revenue, in order to succeed at those certain objectives corporations need to understand the culture and c..

Strategic management case analysis for a firm : When you perform a strategic management case analysis for a firm, you must find information about what the firm actually is doing and what the firm plans to do. Comparing what is planned with what you recommend is an important part of case analysi..

User Account

All Pages