Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 105

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.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.

---

Definitions:

Charter of Rights and Freedoms

A basic legal paper in Canada that ensures essential freedoms and rights for its citizens.

Statutes

Written laws enacted by a legislative body at the federal, state, or local level.

Canon Law

The system of laws and regulations made or adopted by ecclesiastical authority, for the government of the Christian organization and its members.

Legislative Bodies

Elected governmental institutions with the authority to create, amend, and repeal laws.