Consider a river found in the city of Pittsburgh, and then answerthe questions that follow. The city has a kayak rental whose visitors use the river for recreation. The city also has a research facility that dumps industrial waste into the river. This pollutes the river and makes it a less desirable vacation destination. That is, the research facility's waste decreases the kayak rental's economic prot. Suppose that the research facility 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 kayak rental would no longer be affected. If the research facility uses the recycling method, then the research facility's economic prot is 5900 per week, and the kayak rental's economic prot is $2,600 per week. If the research facility does not use the recycling method, then the research facility's economic prot is $1,600 per week, and the kayak rental's economic prot is $1,500 per week. These gures are summarized in the following table. Compfete the folfowing table by computing the tote:r prot (the research facility's economic profit and the kayak rental's economic prot combined) with and without recycling, Profit Research Facility Kayak Rental Total Action (Dollars) (Dollars) (Dollars) No Recycling 1,600 1,500 E Complete the following table by computing the totalr prot (the research facility's economic prot and the kayak rental's economic prot combined) with and without recycling. Profit Research Facility Kayak Rental Total Action (Dollars) (Dollars) (Dollars) No Recycling 1,600 1,500 E Recycling 900 2,500 E "otal economic profit is highest when the recycling production method is V . when the research facility uses the recycling methodr the kayak rental earns $2,600 $1,500 = $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 research facility to recycle water. Howeyerr the recycling method decreases the research facility's economic prot by $1,600 $900 2 $7110 per week. Therefore, the research facility should be willing to use the recycling method if it is compensated with at least $3030 per week. Suppose the kayak rental has the property rights to the river. That is, the kayak rental has the right to a clean (unpolluted) riyer. In this caser assuming the two rms can bargain at no cost, the research facility will V the recycling method and will pay the kayak rental v per week. Now, suppose the research facility has the property rights to the river, including the right to pollute it. In this case, assuming the two firms can bargain at no cost, the research facility will V the recycling method, and the kayak rental will pay the research facility v per week. The kayak rental will make the most economic prot when V . True or False: The research facility will use the recycling method only if the kayak rental has the property rights. C} True Q False