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.

Answer rating: 100% (QA)

To calculate the combined profit for Melanie and Oli we need to calculate the individual profits for ... View the full answer