Suppose Erie Textiles Can Dispose of Its Waste "For Free

question 24

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.Local fishermen and bird watchers would be willing to compensate Erie Textiles ______ for operating with a filter.

• A) up to $310 thousand dollars
• B) no more than $235 thousand dollars
• C) no more than $75 thousand dollars
• D) nothing

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Definitions:

External Supply

The provision of goods or services from outside the organization, often through contracts or purchases from external sources.

Labour Markets

The supply and demand dynamics of labor, where employers seek to hire workers and workers seek employment.

KSAs

Knowledge, Skills, and Abilities; refers to the competencies required to perform a job effectively.

Preferential Consideration

The practice of giving priority or advantage to certain employees or candidates, often based on specific criteria or attributes.