Sunday, August 24, 2008

Unit 1: Business waste: Taxation as a way to overcome market failure

This BBC article suggests that the landfill tax has been successful in reducing the amount industry sends to landfill but that further action is needed to reduce business waste

a) What sort of market failure is business waste?
b) Using a diagram explain how the landfill tax act as a stimulus to reduce the market failure
c) What advantages and disadvantages are there to using taxation to reduce the market failure associated with business waste?

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