Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 88

Multiple Choice

Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces fish and bird reproduction. This causes damage to local fishermen and bird watchers. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen and bird watchers will not suffer any damage. The relevant gains and losses (in thousands of dollars) for the three parties are listed below. When Erie Textiles operates with a filter, the total gain (in thousands of dollars) by all three parties is ________.

• A)$985
• B)$600
• C)$510
• D)$475

---

Definitions:

Division

The process of ascertaining how many times one number is contained within another.

Addition

The mathematical operation of combining two or more numbers to calculate their total sum.

Multiplication

A mathematical operation that combines two numbers to get their product.

Addition

The mathematical process of combining two or more numbers to get their total.