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 prot. 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 prot Is $2,600 per week. If the ketchup factory does not use the recycling method, then the ketchup factory's eoonomic profit is $1,600 per week, and the water park's economic prot is $1,500 per week. These gures are summarized in the following table. Complete the foowr'ng table by computing the total' prot (the ketchup factory's economic prot and the water park's economfc prot combined) with and without recycling. Prot ketchup Factory Water Park Total Action (Dollars) (Dollars) (Dollars) No Recycling 1,500 1,500 Recycling 900 2,600 Total economic prot is highest when the recycling production method is Y . when the ketchup factory uses the recycling method, the water park earns $2,600 $1,500 = $1,100 more per week than it does with no recycling Therefore, the water park should be willing to pay up to $1,100 per week for the ketchup factory to recycle water. However, the recycling method decreases the ketchup factory's economic prot by $1,600 $900 = $700 per week. Therefore, the ketchup factory should be willing to use the recycling method if it is compensated with at least $?00 per week. Suppose the water park has the property rights to the lake. That is, the water park has the right to a clean [unpolluted) lake. In this case, assuming the two rms can bargain at no cost, the ketchup factory will v the recycling method and will pay the water park v per week. Now, suppose the ketchup factory has the property ghts to the lake, including the right to pollute it. In this case, assuming the two rms can barg.' at no cost, the ketchup factory will V the recycling method, and the water park will pay the ketchup factory V per week. The ketchup factory will make the most economic prot when v . True or False: The ketchup factory will use the recycling method only if the water park has the property rights. True False