Bubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot

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Bubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot eat any shrimp. Each day he has a one-ton supply of shrimp. The market price of shrimp is $10,000 per ton.

a. What is the value of a ton of shrimp to him?

b. Would this value change if he were not allergic to shrimp? Why or why not?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:19 AM

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Bubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot

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Fundamentals of Corporate Finance

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