Isn't it better for stores to discount old produce than to waste it?
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Abbreviated Question:
Isn't it better for stores to discount old produce than to waste it?
Answer:
Food waste arises from preferences, incentives, and constraints. Retailers have time and other resource constraints which implies that it simply will not be worth it to sell every last item of food in every instance. It can be said that there is an economically optimal amount of food waste. Economic intuition suggests that it is more likely to be economically optimal to waste food when: