Examlex
A problem facing the timber industry is the absence of any effective way to prove that rain forest timber was legally logged from places like Indonesia,where as much as 80 percent is the product of illegal logging.Companies like The Home Depot do not want to sell timber from illegally logged forests even though the demand is great for timber from rain forests.Exchanges between Home Depot and companies that are selling illegally-logged timber will not occur because:
Net Social Gain
The total benefit to society from producing and consuming a good or service, taking into account both the private benefits and costs and any external benefits or costs.
Innovation
The process of creating new products, services, processes, or technologies that deliver value to society or the market.
Competition
The rivalry among sellers trying to achieve such goals as increasing profits, market share, and sales volume by varying the elements of the marketing mix.
Consumer Surplus
The difference in the total potential payment consumers are willing to make for a good or service and the actual expenditure they incur.
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