Heinz Explores Producing Paper Ketchup Bottles

As part of their long-term commitment to more environmentally friendly production, the famous condiment manufacturer Heinz has announced that it is partnering with packaging company Pulpex to develop a ketchup bottle made from paper. The bottle will be made from sustainably sourced wood pulp, and will renewable and recyclable. Following in the footsteps of the straw industry, this will remove discarded plastics (a major source of pollution) from landfills, lakes, and rivers. This will also reduce pollution related to the production of plastic bottles, which are derived from petroleum. Although the bottle is still in the development stage, executives at both companies expect that consumers will be pouring their ketchup from paper bottles soon. Of course, Heinz Ketchup does have a reputation for moving somewhat slowly.

Discussion Questions:

1. What are some potential strategies for reducing negative externalities?
2. Explain how product differentiation affects the price a firm can charge for its product.

Multiple Choice:

1. In the absence of intervention, goods with negative externalities are likely to be

2. Which market structure are firms in the ketchup industry most likely to compete in?

3. In an unregulated industry with a negative externality, which of the following will occur at equilibrium?

Sources| Cookist: https://www.cookist.com/heinz-may-soon-come-in-a-paper-bottle/?dc_data=19626482_samsung-carnival us&utm_source=taboola&utm_medium=taboola_news&ui=fbd932d4-abc2-41c1-8378-576788bd3525-tucta8bc122; Unsplash: https://unsplash.com/photos/qxXqf5kq1gc