Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 77

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. $$\begin{array} { | l | c | c | } \hline & \text { With Filter } & \text { Without Filter } \\\hline \text { Gains to Erie } & \$ 200 & \$ 400 \\\hline \text { Fisherman } & \$ 180 & \$ 50 \\\hline \text { Bird Watchers } & \$ 130 & \$ 25 \\\hline\end{array}$$ 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:

Tectopulvinar Pathway

A visual processing pathway in the brain, connecting the superior colliculus with the pulvinar nucleus of the thalamus, involved in orienting the eyes towards stimuli.

Retinohypothalamic Pathway

The retinohypothalamic pathway is a part of the eye-brain connection that helps regulate the circadian rhythm by conveying light information from the retina to the hypothalamus.

Geniculostriate Pathway

The major visual pathway in the brain, which runs from the retina to the primary visual cortex via the lateral geniculate nucleus of the thalamus.

Tectopulvinar Pathway

A pathway in the visual system that connects the superior colliculus with the pulvinar nucleus of the thalamus, involved in the processing of visual information related to motion and spatial orientation.