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.

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Definitions:

Gender Discrimination

Unfair or unequal treatment of individuals based on their gender or sex.

Federal Law

Legislation that is passed by the national government and applicable across the entire country.

Pregnancy

The condition of having a developing embryo or fetus in the uterus.

Age Discrimination

Prejudice or discrimination against individuals on the basis of their age, typically targeting older people.