Business, 12.08.2019 19:20 keke6361

Assume pollutex inc. produces paper in its plant located on lake ontario, half a mile away from cleanair camping. pollutex employs an obsolete production process, dumping pollutants in the lake. the camp has experienced a steady decline in the number of attendees since pollutex moved nearby. in particular, the owners forecast that cleanair camping will generate a profit of only $50,000 a year in the future, which is $150,000 less than the one generated before pollutex moved nearby. a cleaner production process is available, which would not require dumping the pollutants in the lake. however, converting the plant would increase yearly costs by $100,000. is the current situation pareto efficient?

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Assume pollutex inc. produces paper in its plant located on lake ontario, half a mile away from clea...

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