A Company That Dumps Toxic Waste in a River to Keep

question 110

Multiple Choice

A company that dumps toxic waste in a river to keep costs down will likely never get caught by environmental regulators. According to Garrett Harden, we can best understand the costs of this action in terms of:

• A) a public goods dilemma.
• B) a relative deprivation.
• C) by thinking of it as an unintended consequence.
• D) a social dilemma.
• E) a tragedy of the commons.

---

Definitions:

Transportation Method

A mathematical optimization technique used for finding the most cost-efficient plan for distributing products from several suppliers to several consumers.

Aggregate Planning

A process of developing, analyzing, and maintaining a preliminary, approximate schedule of the overall operations of an organization.

Stockout Cost

The cost incurred when inventory is not available to meet demand.

Inventory Holding Cost

The total cost associated with storing unsold goods or materials, including warehousing, insurance, depreciation, and opportunity costs.