Melanie and Oli are competing Pacific halibut fishermen. Both have been assigned ITQs that limit their catch
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Question:
Melanie and Oli are competing Pacific halibut fishermen. Both have been assigned ITQs that limit their catch to 1,000 tonnes of Pacific halibut each. Melanie's cost per ton is $20; The cost per ton of Oli is $28.
Refer to the information provided and assume that the market price for Pacific halibut is $40 per ton. If Melanie pays Oli $10 per ton for her ITQ and then reaches her new limit of 2000 tons, her combined profit would be:
$28,000.
$32,000.
$40,000.
$54,000.
Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
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