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Complete the following table by computing the total profit (the ketchup factory's economic profit and the water park's economic profit combined) with and without recycling. Action No Recycling Recycling. Ketchup Factory (Dollars) 1,600 900 Profit Water Park (Dollars) 1,500 2,600 Total (Dollars) Total economic profit is highest when the recycling production method is

Complete the following table by computing the total profit (the ketchup factory's economic profit and the water park's economic profit combined) with and without recycling. Action No Recycling Recycling. Ketchup Factory (Dollars) 1,600 900 Profit Water Park (Dollars) 1,500 2,600 Total (Dollars) Total economic profit is highest when the recycling production method is

Exploring Economics
Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter8: Market Failure
Section: Chapter Questions
Problem 2P: Draw a standard supply and demand diagram for televisions, and indicate the equilibrium price and...
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Consider a lake found in the town of Center Barnstead, and then answer the questions that follow. The town has a water park whose visitors use the lake for recreation. The town also has a ketchup factory that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the ketchup factory's waste decreases the water park's economic profit. Suppose that the ketchup factory 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 water park would no longer be affected. If the ketchup factory uses the recycling method, then the ketchup factory's economic profit is $900 per week, and the water park's economic profit is $2,600 per week. If the ketchup factory does not use the recycling method, then the ketchup factory's economic profit is $1,600 per week, and the water park's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the ketchup factory's economic profit and the water park's economic profit combined) with and without recycling. Action No Recycling Recycling Ketchup Factory (Dollars) 1,600 900 Profit Water Park (Dollars) 1,500 2,600 Total (Dollars) Total economic profit is highest when the recycling production method is
Transcribed Image Text:Consider a lake found in the town of Center Barnstead, and then answer the questions that follow. The town has a water park whose visitors use the lake for recreation. The town also has a ketchup factory that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the ketchup factory's waste decreases the water park's economic profit. Suppose that the ketchup factory 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 water park would no longer be affected. If the ketchup factory uses the recycling method, then the ketchup factory's economic profit is $900 per week, and the water park's economic profit is $2,600 per week. If the ketchup factory does not use the recycling method, then the ketchup factory's economic profit is $1,600 per week, and the water park's economic profit is $1,500 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the ketchup factory's economic profit and the water park's economic profit combined) with and without recycling. Action No Recycling Recycling Ketchup Factory (Dollars) 1,600 900 Profit Water Park (Dollars) 1,500 2,600 Total (Dollars) Total economic profit is highest when the recycling production method is
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