Please refer to the question in the imagre below.

Question 2. Externalities (7 points) Suppose Erie Textiles can dispose of its waste "for free" by dumping it into a nearby river. While the firm benefits from dumping waste into the river, the waste reduces the fish and bird reproduction. This causes damage to local fishermen and the aviarist. At a cost, Erie Textiles can filter out the toxins, in which case local fishermen or aviarist will not suffer any damage. The relevant daily gains and losses for the three parties are listed below With filter Without filter Gains to Erie Textiles $200 $400 Fishermen $180 $50 Aviarist $130 $25 A) What is the largest (whole-dollar) amount by which local fishermen and aviarist could compensate Erie Textiles for operating with a filter and still be better off than without a filter? (3 p) B) If all three parties can communicate with each other at no cost and property rights are clearly defined, will Erie Textiles use a filter? Explain! (2 p) C) Suppose that Erie Textiles and the local fishermen and aviarist can negotiate with one another at no cost (still with clearly defined property rights). If Erie textile can make $440 without a filter (a different assumption than the table), will they operate with a filter? Explain! (2 p)