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

question 32

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. If the fishermen are given the right to clean water,

• A) the outcome will be more efficient than if the factory is given the right to use the water as it sees fit.
• B) the outcome will be less efficient than if the factory is given the right to use the water as it sees fit.
• C) the efficient outcome will occur no matter who is given which property right, and the individual gains will be the same in each case.
• D) the factory will be forced to shut down.
• E) the efficient outcome will occur no matter who is given which property right, but how that maximum gain is split will be determined during bargaining.

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Definitions:

SATA Devices

SATA devices refers to storage gadgets that use Serial Advanced Technology Attachment (SATA) interface for connectivity and data transfer, known for its high-speed performance.

Gb/s

Gigabits per second, a unit of data transfer rate equal to 1,000,000,000 bits per second, often used to measure network speed and bandwidth.

Partitioning

The process of dividing a computer's hard drive into multiple logical storage units or partitions, each treated as a separate drive.

Drive Letter

An alphabetic character assigned to a particular storage volume or device in a computer's file system.