Business, 10.02.2020 22:28 dragaozin4505

There is a factory that is dumping toxic waste into a river where a resort is located downstream. At the moment the factory is not filtering the water that it dumps into the river. There is a filter it could install that would remove a significant amount of the toxic elements from the water before it is dumped in the river. The factory and the resort have each assessed the situation and come up with the following data:
Gains to: No Factory Factory with filter Factory with no filter
Factory $0/day $700/day $800/day
Resort $400/day $250/day $100/day
1. If the factory is given ownership of the river, what choice will it make?
2. How much would the resort be willing to pay to get the factory to install the filter?
3. How about to get the factory to move from it current location on the river?
4. What will be their agreement and will the factory accept?
5. If the resort is given ownership of the river, what choice will it make?
6. How much would the factory be wiling to pay to get the resort to make another choice?

Answers: 2

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There is a factory that is dumping toxic waste into a river where a resort is located downstream. At...

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