Suppose that the chemical plant 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 resort would no longer be affected. If the chemical plant uses the recycling method, then the chemical plant's economic profit is $2,100 per week, and the resort's economic profit is $2,500 per week. If the chemical plant does not use the recycling method, then the chemical plant's economic profit is $2,400 per week, and the resort's economic profit is $2,000 per week. These figures are summarized in the following table.Complete the following table by computing the total profit (the chemical plant's economic profit and the resort's economic profit combined) with and without recycling. Profit Chemical Plant Resort Total (Dollars) Action (Dollars) (Dollars) No Recycling 2,400 2,000 Recycling 2,100 2,500 Total economic profit is highest when the recycling production method is When the chemical plant uses the recycling method, the resort earns $2 not used0 = $500 more per week than it does with no recycling.Therefore, the resort should be willing to pay up to $500 per week for the lant to recycle water. However, the recycling method decreases used $300 per week. merelore, the chemical plant should be willing to use the recycling the chemical plant's economic profit by $2,400 $2,100 method if it is compensated with at least $300 per week. Suppose the resort has the property riqhts to the lake. That is, the resort has the right to a clean (unpolluted) lake. In this case, assuming the two firms can bargain at no cost, the chemical plant will not use the recycling method and will pay the resort between $300 and $500 per week. Now, suppose the chemical plant has the property rights to the lake, including the right to pollute it. In this case, assuming the two firms can bargain at no cost, the chemical plant will not use the recycling method, and the resort will pay the chemical plant between $200 and $300 per week The chemical plant will make the most economic profit when the resort has property rights to a clean lake True or False: The chemical plant will use the recycling method, regardless of who has the property rights. True False