Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 114

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 with a filter, the total gain (in thousands of dollars) by all three parties is ______.

• A)$985
• B)$600
• C)$510
• D)$475

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Definitions:

Sustainability

The practice of conducting activities in a way that does not deplete natural resources, ensuring ecological balance and long-term environmental quality.

Holistic Approach

A method considering all parts of something as interconnected and part of a whole, rather than focusing on individual components.

Environmental Issues

Concerns related to the natural environment, including pollution, climate change, and resource depletion, impacting both ecosystems and human populations.

Functional Area

Specific sectors within a business or organization dedicated to particular tasks or operations, such as marketing, finance, or human resources.