A polluting firm dumps waste into the ocean during production. The loss in value due to damaging the fish stock is valued at $100,000 (you can think of this as lost profits for fishing firms). The firm could eliminate the pollution at a cost of $60,000 a year. Choose the statement that describes the expected efficient outcome if the polluting firm has property rights over the ocean. The firm continues to pollute The polluting firm pays the $60,000 to eliminate pollution The fishing firms pay the $60,000 to eliminate pollution

A polluting firm dumps waste into the ocean during production. The loss in value due to damaging the fish stock is valued at $100,000 (you can think of this as lost profits for fishing firms). The firm could eliminate the pollution at a cost of $60,000 a year. Choose the statement that describes the expected efficient outcome if the polluting firm has property rights over the ocean. The firm continues to pollute The polluting firm pays the $60,000 to eliminate pollution The fishing firms pay the $60,000 to eliminate pollution

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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