There are 500 families in a neighborhood that are affected by air pollution from a local factory. The pollution is within legal limits, but could be reduced further if the company spent $10,000 on upgraded ventilators. The company agrees to install the ventilators if the affected families contribute the $10,000. A committee starts to collect donations to pay for the ventilators. Which of the following is most likely to occur?
◦ Because there are relatively few families involved and the individual contribution is so small, all families will voluntarily contribute.
◦ Because each individual contribution is so small and individuals will benefit from the reduction in air pollution whether they contribute or not, most people will not contribute and the firm will not upgrade the ventilators.
◦ Even if the families raise $10,000, the firm will not reduce its air pollution since it is within legal limits.
◦ The courts will force the firm to spend the $10,000 regardless of whether or not the families contribute the money.
Factory
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