Consider a lake found in the town of Center Barnstead, and then answer the questions that follow. The town has a resort whose visitors use the lake for recreation. The town also has a fish cannery that dumps industrial waste into the lake. This pollutes the lake and makes it a less desirable vacation destination. That is, the fish cannery's waste decreases the resort's economic profit. Suppose that the fish cannery 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 resort would no longer be affected. If the fish cannery uses the recycling method, then the fish cannery's economic profit is $1,800 per week, and the resort's economic profit is $2,800 per week. If the fish cannery does not use the recycling method, then the fish cannery's economic profit is $2,300 per week, and the resort's economic profit is $2,000 per week. These figures are summarized in the following table. Complete the following table by computing the total profit (the fish cannery's economic profit and the resort's economic profit combined) with and without recycling.Prot Fish Cannery Resort Total Actlon (Dollars) (Dollars) (Dollars) No Recycling 2,300 2,000 E Recycling 1,300 2,300 E Total economic prot is highat when the recycling production method is v . When the sh cannery uses the recycling method, the resort earns $2,300 $2,000 2 $301] more per week than it does with no recycling. Therefore, the resort should be willing to pay up to $800 per week for the sh cannery to recycle water. However, the recycling method decreases the sh cannery's economic prot by $2,300 $1,300 = $500 per week. Therefore, the sh cannery should be willing to use the recycling method if it is compensated with at least $500 per week. Suppose the resort has the property rights to the lake. That is, the resort has the right to a clean {unpolluted) lake. In this case, assuming the two rms can bargain at no cost, the sh cannery will V the recycling method and will pay the resort V per week. Now, suppose the sh cannery has the property rights to the lake, including the right to pollute it. In this case, assuming the two rms can bargain at no cost, the sh cannery will 7 the recycling method, and the ram-t will pay the sh cannery v per week. The resort will make the most economic prot when V . True or False: The sh cannery will use the recycling method only if the resort has the property rights. 0 Tn.|e 0 False