Consider a lake found in the town of Center Bamstead, and then answer the questions that follow. The town has a campground whose visitors use the lake for recreation. The town also has a tannerv that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the tannery's waste decreases the campgrou nd's economic profit. Suppose that the tanneryr 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 campground would no longer be affected. 1f the tannery uses the recycling method, then the tannery's economic profit is $1,400 per week, and the campground's economic profit is $2,700 per week. If the tannery does not use the recycling method, then the tannerv's economic profit is $2,200 per week, and the campground's economic profit is $1,500 per week. These gures are summarized in the following table. Complete the following table by computing the total prot ( the tannery's economic profit and the campground's economic profit combined) with and without recycling. Prot Tannery Camp-ground Total Aclion (Dollars) (Dollars) (Dollars) No Recycling 2,200 1,500 E Recycling 1,400 2,700 E Total economic prot is highest when the recycling production method is V . When the tannery uses the recycling method, the campground earns $2,700 $1,500 2 $1,200 more per week than it does with no recycling. Therefore, the campground should be willing to pay up to $1,200 per week for the tannery to recycle water. However, the recycling method decreases the tannery's economic profit by $2,200 $1,400 : $800 per week. Therefore, the tannery should be willing to use the recycling method if it is compensated with at least $800 per week. Suppose the campground has the property rights to the lake. That is, the campground has the right to a clean (unpolluted) lake. ]n this case, assumin e we irms can ar aina no cos e anne wi ere cin me D an wi a ecam roun gtht f bg t t,tht ry ll Vth cylg thd d llpyth pg d V per week. Now, suppose the tannery has the property rights to the lake, including the right to pollute it. [n this case, assuming the two rms can bargain at no cost, the tannery will V the recycling method, and the campground will pay the tannery V per week. The tannery will make the most economic prot when V . True or False: The tannery will use the recycling method only if the campground has the property rights. 0 True 0 False