Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $20,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $13,000. a. If Joe owns the rights to the river, which of the following is the most likely outcome? O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute. O Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. b. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome? Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute.

Plastics, Inc. and Joe's Canoe Shack both operate businesses located on the river. Plastics, Inc. dumps pollution into the river, which results in fewer canoe rentals for Joe. The marginal cost of cleaning up the pollution is $20,000 for Plastics, Inc. Joe estimates a reduction in pollution will lead to a marginal benefit of $13,000. a. If Joe owns the rights to the river, which of the following is the most likely outcome? O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute. O Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. b. If Plastics, Inc. owns the rights to the river, which of the following is the most likely outcome? Plastics will pay Joe $17000 to pollute. O Joe will enforce his property rights and not allow Plastics to pollute. O Plastics will use its property rights to continue polluting. O Joe will pay Plastics $17000 not to pollute.