Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 10

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:

Boundary-management Behavior

The actions taken by individuals or groups to manage and maintain the distinction between different roles, tasks, or work and personal life.

Organization-focused Behavior

Actions and attitudes of individuals within an organization that are primarily directed toward supporting organizational goals and success.

Relating

The process of making connections or establishing relationships between people, enabling effective communication and understanding.

Social Capital

The networks of relationships among people who live and work in a particular society, enabling that society to function effectively.