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:

Cognitive Neuroscience

The scientific field that is concerned with the study of the biological processes and aspects that underlie cognition, with a focus on the neural connections in the brain.

Behaviorism

A field of psychology that focuses on observable behaviors and disregards internal processes such as thoughts and emotions.

Humanistic Psychology

A psychological perspective that emphasizes the study of the whole person and the uniqueness of each individual's experience.

Charles Darwin

A British naturalist whose theory of evolution by natural selection became the foundation for modern evolutionary studies.