Consider a Local Factory That Pollutes a Nearby Stream

question 107

Multiple Choice

Consider a local factory that pollutes a nearby stream.Local fishers may be unable to negotiate a deal with the local factory to eliminate the negative externality because:

• A)the fishers' cost will never exceed the factory's benefit from polluting the stream
• B)the local law gives the factory the right to pollute
• C)the cost of coordinating the fishers into one bargaining body is too large
• D)some of the local fishers work at the factory

---

Definitions:

Metropolitan Centers

Major urban areas that serve as the economic, cultural, and political hubs of a region.

West Coast Gateway

Refers generally to ports on the West Coast of the United States that serve as major entry and exit points for international trade and travel.

Oregon And California Trails

Historic overland routes used in the 19th century by American settlers migrating west in search of land and opportunity.