Lakeview Spa and Shoreline Industries are both situated along the banks of Lake Dreary. Unfortunately for the owners of

[answerhappygod]

Lakeview Spa and Shoreline Industries are both situated along
the banks of Lake Dreary. Unfortunately for the owners of the
Lakeview Spa, Shoreline Industries regularly dumps garbage into the
lake, polluting the lake and negatively impacting Lakeview Spa's
profits. The following table shows the firms' weekly profits when
Shoreline Industries does and does not dump garbage into the lake.
Does not dump garbage Dumps garbage Shoreline Industries
$1,000/week $1,100/week Lakeview Spa $600/week $400/week a) If
Shoreline Industries has the legal right to dump garbage into the
lake, and Shoreline Industries and Lakeview Spa can negotiate with
one another at no cost, then will Shoreline Industries dump garbage
into the lake? [10 marks] b) If Shoreline Industries has the legal
right to dump garbage into the lake, and it costs Lakeview Spa $120
per week to negotiate with Shoreline Industries, then will
Shoreline Industries dump garbage into the lake?