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Sophia owns a large flower nursery that is situated close to a chemical plant in

ID: 1121514 • Letter: S

Question

Sophia owns a large flower nursery that is situated close to a chemical plant in the city of Detrigan. The airborne pollutants released by this plant affect the growth of the hybrid seedlings in Sophia's nursery. During the last production season Sophia lost business worth around $25,000 because of the pollution created by this chemical plant. To prevent further losses, she threatens to sue the chemical plant if it does not install air scrubbers to reduce pollution. Clara Allen, the operations head at the chemical facility, believes that the plant can continue production without installing air scrubbers by simply paying $25,000 to Sophia.

Which of the following, if true, will strengthen Clara's claim that management should simply pay Sophia rather than installing air scrubbers?

A. In spite of losing business worth $25,000, Sophia's profit this season went up by 10 percent.

B. Detrigan has been rated as the most polluted city in the country.

C. The cost of negotiating with Sophia is almost negligible.

D. The government has recently lowered the maximum limit of pollutants that can be released by each chemical plant.

E. Besides producing industrial chemicals, the plant also produces garden fertilizers.

Explanation / Answer

Ans:

Option C

The cost of negotiating with Sophia is almost negligible.

when the cost of negotiation is almost negligible and in case of a sue by sophia, Clara's claim to simple pay to sophia by management is better option. when the detrigan is rated as most polluted city and government has lowered pollution limits in such as it will be required to  install air scrubbers to reduce pollution.

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