Question
Consider a river found in the city of Philadelphia, and then answer the questions that follow. The city has a hiking lodge whose visitors use
Consider a river found in the city of Philadelphia, and then answer the questions that follow.
The city has a hiking lodge whose visitors use the river for recreation. The city also has a tannery that dumps industrial waste into the river. This pollutes the river and makes it a less desirable vacation destination. That is, the tannery's waste decreases the hiking lodge's economic profit.
Suppose that the tannery could use a different production method that involves recycling water. This would reduce the pollution in the river to levels safe for recreation, and the hiking lodge would no longer be affected. If the tannery uses the recycling method, then the tannery's economic profit is $2,000 per week, and the hiking lodge's economic profit is $2,900 per week. If the tannery does not use the recycling method, then the tannery's economic profit is $2,700 per week, and the hiking lodge's economic profit is $1,900 per week. These figures are summarized in the following table.
Complete the following table by computing the total profit (the tannery's economic profit and the hiking lodge's economic profit combined) with and without recycling.
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