Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 45

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. $$\begin{array} { | l | c | c | } \hline & \text { With Filter } & \text { Without Filter } \\\hline \text { Gains to Erie } & \$ 200 & \$ 400 \\\hline \text { Fisherman } & \$ 180 & \$ 50 \\\hline \text { Bird Watchers } & \$ 130 & \$ 25 \\\hline\end{array}$$ When Erie Textiles operates without a filter, the total gain (in thousands of dollars) to all three parties is ______.

• A)$985
• B)$325
• C)$510
• D)$475

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Definitions:

Bona Fide

A genuine, authentic condition or quality without intent of deceit.

Strategic Assets

Valuable resources owned by a company that are instrumental in maintaining its competitive edge and achieving long-term goals.

Organizational Success

The achievement of the objectives and goals set by a business or institution, often measured by financial performance, market share, or satisfaction levels among stakeholders.

Human Resource Practices

Refers to the strategies, policies, and processes implemented by an organization to manage its workforce effectively.