Multiple Choice

Two farmers must independently choose a pest control method. Their final profit is their crop income minus the costs of their chosen method and any necessary water filtration. The financial details are as follows:

  • Crop Income: $500
  • Cost of 'Integrated Pest Control' (IPC): $100
  • Cost of 'Toxic Pesticide': $40
  • A water filtration system costing $120 is required for each farmer only if both choose the 'Toxic Pesticide'.

Initially, one farmer is using IPC and the other is using the Toxic Pesticide. If the farmer using IPC switches to the Toxic Pesticide, which statement best analyzes the impact on that farmer's profit?

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Updated 2025-08-27

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