Total economic profit is highest when the recycling production method is or not used).when the chemical plant uses the recycling method, the resort earns $3,200−$2,000=$1,200$3,200−$2,000=$ 1,200 more per week than it does with no recycling. therefore, the resort should be willing to pay up to $1,200 per week for the chemical plant to recycle water. however, the recycling method decreases the chemical plant's economic profit by $3,000−$2,200=$800$3,000−$2,200=$80 0 per week. therefore, the chemical plant should be willing to use the recycling method if it is compensated with at least $800 per week. suppose the resort has the property rights to the river. that is, the resort has the right to a clean (unpolluted) river. in this case, assuming the two firms can bargain at no cost, the chemical plant will or not use) the recycling method and will pay the resort per week. now, suppose the chemical plant has the property rights to the river, including the right to pollute it. in this case, assuming the two firms can bargain at no cost, the chemical plant will (use or not use) the recycling method, and the resort will pay the chemical plant per week. the resort will make the most economic profit when has property rights to clean river or the chemical plant has property rights to pollute the river) .