Why are the costs of recycling sometimes greater than the cost of using raw materials?

• A. Because governments subsidize the use of recycled materials, increasing their cost.
• B. Because the process of collecting, sorting, and processing recycled materials can be more expensive than extracting and refining raw materials.
• C. Because recycling eliminates all negative externalities associated with production.
• D. Because recycled materials always have higher market demand than raw materials.

Answer: (B)

Verified step by step guidance

1. Understand the components of costs involved in recycling: collecting, sorting, and processing recycled materials require labor, technology, and infrastructure.
2. Compare these costs to those of using raw materials, which involve extraction and refining processes that can benefit from economies of scale and established supply chains.
3. Recognize that recycling often involves additional steps such as transportation to specialized facilities and quality control to ensure materials meet standards, which can increase costs.
4. Consider that subsidies or government policies can influence costs, but the primary reason for higher costs is the complexity and resource intensity of recycling processes compared to raw material extraction.
5. Conclude that the cost difference arises because the recycling process is inherently more complex and resource-demanding, not because of market demand or elimination of externalities.