Final answer:
The Bigbelly waste management and recycling company generates social value by reducing the amount of waste in landfills, leading to broader community and environmental benefits which surpass the private benefits to buyers and sellers.
Step-by-step explanation:
The Bigbelly waste management and recycling company exemplifies a business that generates social value. This type of value is created when a company's activities have a positive impact on the community or environment, beyond the immediate benefits to the company and its customers. In the case of the Junkbuyers Company, a similar entity, the social value comes not just from the transaction between the buyer and the seller, but also from the environmental benefits of reducing the amount of garbage that ends up in landfills. This reduces costs for households and the city and decreases environmental degradation. Therefore, the social benefits of such a company are larger than the private benefits that accrue to the buyers and sellers involved.