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

question 65

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. What should the fishermen do if they know the factory will maximize profits and no negotiation is possible?

• A) Install a treatment plant.
• B) Do not install a treatment plant.
• C) It makes no difference if the fishermen do or do not install a treatment plant.
• D) Install a filter.
• E) Exit the industry.

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Definitions:

Clutch Size

The total number of eggs laid or young born by a female bird, reptile, or similar animal at one time.

Extinction

The end of an organism or of a group of organisms, usually a species.

Migration Routes

The paths or directions taken by animals or people as they move from one location to another, often seasonally or cyclically.