A local municipal authority operates a community recycling scheme. The scheme is currently operating at an output of 15,000 tonnes of recycled waste per year. At this output level, the average cost of processing a tonne of waste is £78.00, while the price charged to commercial users is £62.00 per tonne. Calculate the total annual government subsidy necessary for this scheme to cover all of its costs.
22 exam-style questions on Edexcel A A Level Economics 1.2.9 Indirect taxes and subsidies. Each one has a worked solution and a mark scheme showing where the marks go.