Donald fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ, and the current market price is $10 per ton. If Donald sold his ITQ to Ronny for $5,000, society would benefit from

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Ronny fishes at a lower cost ($4 per ton) compared to Donald ($6 per ton). If Ronny uses both ITQs, he would save $2 per ton on 1,000 tons, totaling a savings of $2,000, which represents an efficiency savings in fishing costs.

Donald Fishes for Swordfish at a Cost of $6 Per