|
|
|
|
|
by quotemstr
128 days ago
|
|
Actors in a capitalist system have an incentive to maximize profit. How is it profit-maximizing to pay to produce an item and throw it away unsold? > negative externalities do not feed back into supply or demand. What is the unaccounted externality? Clothing makers pay for material inputs and labor inputs. They pay for transportation. If they discard goods, they pay for more transportation and for the landfill. What specific externality is unaccounted? |
|
This may be profit maximizing because it maintains the exclusivity of the brand.
https://en.wikipedia.org/wiki/Veblen_good