Final answer:
Solving the garbage problem includes implementing strategies like mandatory recycling, composting, reducing waste production, and using marketable permits to incentivize efficient waste management among firms.
Step-by-step explanation:
To solve the problem of garbage, we could consider several strategies that aim to reduce environmental impact and manage waste effectively. Firstly, recycling is a crucial step; it helps to curb pollution by reducing the demand for raw materials and the energy used in manufacturing.
Making recycling mandatory could significantly lower the environmental contamination from plastics, glass, and other materials. Secondly, implementing composting for organic waste can turn kitchen scraps and yard waste into valuable fertilizer, diverting a substantial amount of waste from landfills.
Thirdly, reducing waste production through more conscious consumption and enhancing product design to be more durable and easier to repair can lower the amount of garbage generated.
Lastly, the adoption of marketable permits for garbage, where the government issues permit for a certain level of waste production that can be traded among firms, can incentivize companies to reduce waste most cost-effectively.
Each firm can determine how best to minimize its waste output—whether through technological improvements or by purchasing permits from firms that have successfully reduced their waste below the quota.