Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 151

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.  
Suppose that Erie Textiles can only negotiate with one of the affected groups. Will Erie operate with a filter?

• A)Yes, if they negotiate with the Bird Watchers, but not if they negotiate with the Fishermen.
• B)No, regardless of which group they negotiate with.
• C)Yes, if they negotiate with the Fishermen, but not if they negotiate with the Bird Watchers.
• D)Yes, regardless of which group they negotiate with.

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Definitions:

Control Behaviour

Refers to the management or regulation of one's actions or reactions in various situations.

Humanist

A person who advocates for the values of human welfare, dignity, and rationalism, often emphasizing the importance of human values and concerns.

Environmental Circumstances

The physical, social, and cultural conditions that surround and influence an individual or community.

Relevance

The quality of being closely connected or appropriate to what is being done or considered.