Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 128

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. The cost (in thousands of dollars) of the filter to Erie Textiles is ________, and the net benefit (in thousands of dollars) of the filter to the fishermen and bird watchers is ________.

• A)$400; $310
• B)$310; $200
• C)$200; $75
• D)$200; $235

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Definitions:

Extrovert

An individual who is outgoing, sociable, and thrives in social situations, often feeling energized by interactions with others.

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The part of the brain located at the front of each cerebral hemisphere, associated with reasoning, planning, parts of speech, movement, emotions, and problem-solving.

Reciprocal Determinism

A concept in psychology suggesting that a person's behavior both influences and is influenced by personal factors and the social environment.

Personality Factors

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