Scenario 18.1: It Is the Factory's Choice Whether to Install a Filter

question 53

Multiple Choice

Scenario 18.1:
It is the factory's choice whether to install a filter. It is the choice of the nearby fishermen whether to install a treatment plant. Dollar figures show profit. The factory and the fishermen can negotiate costlessly, and no one else is affected by the result.
Factory Fishermen
A: No filter or treatment plant $10,000 $2,000
B: Filter; no treatment plant $6,000 $10,000
C: No filter; treatment plant $10,000 $4,000
D: Filter; treatment plant $6,000 $6,000
-Refer to Scenario 18.1. Which of the following is TRUE?

• A) The factory will never agree to B, because that would leave them with much less profit than the fishermen.
• B) C will never occur because that would leave the fishermen with much less profit than the factory.
• C) If the factory refused to install a filter, the fishermen would refuse to install a treatment plant.
• D) The factory must install a filter, because they contaminate the water.
• E) The profits above indicate profit before any agreement is made, and profit varies enough to make a mutually acceptable agreement possible.

---

Definitions:

Fixed Units of Measurement

This refers to using consistent and unchanging units when measuring variables or quantities in research, experiments, or any form of data collection.

Ratios

Expresses the quantitative relationship between two numbers, showing how many times one value contains or is contained within the other.

Univariate Data

Data consisting of observations on only a single characteristic or attribute.

Single Variable

Pertaining to equations, functions, and data that involve only one variable and do not require the interaction or relationship with any other variables for their resolution.