Suppose a Local Meat Packing Company Dumps Waste into a River,causing

Multiple Choice

Suppose a local meat packing company dumps waste into a river,causing a firm located downstream that uses the water to incur costs to restore the water quality.A solution to this problem that would improve efficiency might involve:
1) the meat-packing company relocating near a different river;
2) the meat-packing company buying the downstream firm;
3) permitting the downstream firm to impose a fee on the meat-packing company.

A) 1 only
B) 2 only
C) 3 only
D) 2 or 3 only
E) 1 or 3 only