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 the 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 (in thousands of dollars) and losses for the three parties are listed below. $$\begin{array} { l r c } & \text { With Filter } & \text { Without } \\\text { Gains to Erie } & \$ 200 & \$ 400 \\\text { Fishermen } & \$ 180 & \$ 50 \\\text { Bird Watchers } & \$ 130 & \$ 25\end{array}$$
Refer to the information given above.If Erie Textiles does not install the filter,there will be a net social _____ of _____ (in thousands of dollars) .

• A)loss;$35
• B)gain;$75
• C)loss;$110
• D)gain;$200

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Definitions:

Percent Per Year

A rate that expresses the change of a quantity over one year as a percentage of the initial quantity.

Productivity

A measure of the efficiency with which goods and services are produced, often expressed as output per unit of labor.

Real GDP Per-Person

A measure of a country's economic output that accounts for population size, providing an average economic output per individual, adjusted for inflation.

Canada

Canada is a country located in the northern part of North America, known for its vast landscapes, multicultural diversity, and strong economy.