Help Complete the following table by computing the total profit (the fish processor's economic profit and the kayak rental's economic profit combined) withand without recycling.ActionNo RecyclingRecyclingFish Processor(Dollars)2,3001,700ProfitKayak Rental(Dollars)1,0002,100Total economic profit is highest when the recycling production method isWhen the fish processor uses the recycling method, the kayak rental earns $2,100 - $1,000 $1,100 more per week than it does with no recycling.Therefore, the kayak rental should be willing to pay up to $1,100 per week for the fish processor to recycle water. However, the recycling methoddecreases the fish processor's economic profit by $2,300 $1,700 = $600 per week. Therefore, the fish processor should be willing to use therecycling method if it is compensated with at least $600 per week.Total(Dollars)Suppose the kayak rental has the property rights to the lake. That is, the kayak rental has the right to a clean (unpolluted) lake. In this case,the recycling method and will pay the kayakassuming the two firms can bargain at no cost, the fish processor willrentalper week.TrueNow, suppose the fish processor has the property rights to the lake, including the right to pollute it. In this case, assuming the two firms can bargainat no cost, the fish processor willthe recycling method, and the kayak rental will pay the fishper week.processorThe kayak rental will make the most economic profit whenFalse434,3004,600True or False: The fish processor will use the recycling method only if the kayak rental has the property rights.NOV243tvTMZA C 8. The effects of property rights on achieving efficiencyConsider a lake found in the village of Sturbridge, and then answer the questions that follow.The village has a kayak rental whose visitors use the lake forrecreation. The village also has a fish processor that dumpsindustrial waste into the lake. This pollutes the lake andmakes it a less desirable vacation destination. That is, thefish processor's waste decreases the kayak rental's economicprofit.Suppose that the fish processor could use a different production method that involves recycling water. This would reduce the pollution in the lake tolevels safe for recreation, and the kayak rental would no longer be affected. If the fish processor uses the recycling method, then the fish processor'seconomic profit is $1,700 per week, and the kayak rental's economic profit is $2,100 per week. If the fish processor does not use the recyclingmethod, then the fish processor's economic profit is $2,300 per week, and the kayak rental's economic profit is $1,000 per week. These figures aresummarized in the following table.Complete the following table by computing the total profit (the fish processor's economic profit and the kayak rental's economic profit combined) withand without recycling.NOV24tvMacBook Pro

Economic ProfitsEconomic profits are the revenue created minus explicit and implicit costs. Explicit…

Consider a lake found in the village of Sturbridge, and then answer the questions that follow. The village has a kayak rental whose visitors use the lake for recreation. The village also has a fish processor that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish processor's waste decreases the kayak rental's economic profit. ·siamm Suppose that the fish processor could use a different production method that involves recycling water. This would reduce the pollution in the lake to levels safe for recreation, and the kayak rental would no longer be affected. If the fish processor uses the recycling method, then the fish processor's economic profit is $1,700 per week, and the kayak rental's economic profit is $2,100 per week. If the fish processor does not use the recycling method, then the fish processor's economic profit is $2,300 per week, and the kayak rental's economic profit is $1,000 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish processor's economic profit and the kayak rental's economic profit combined) with and without recycling. NOV 24 m tv MacBook Pro ZA

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter13: Positive Externalities And Public Goods

Section: Chapter Questions

Problem 23P: HighFlyer Airlines wants to build new airplanes with greatly increased cabin space. This will allow...