
Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue
Edition 20ISBN: 978-1308221281
Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue
Edition 20ISBN: 978-1308221281 Exercise 5
Ingvar and Olaf are the only two fishermen in their area. Each has been assigned an ITQ that allows him to catch 20 tons of salmon. Ingvar's MC of catching salmon is $6 per ton while Olaf's MC of catching salmon is $7 per ton. If the price of salmon is $10 per ton, then to maximize efficiency, the two guys should trade ITQs until Ingvar is in charge of catching _______ tons while Olaf catches ______ tons.
A) 20; 20.
B) 30; 10.
C) 40; 0.
D) 0; 40.
A) 20; 20.
B) 30; 10.
C) 40; 0.
D) 0; 40.
Explanation
Marginal cost of fishing :
Mr. Iv and M...
Microeconomics 20th Edition by McConnell, Sean Flynn, Stanley Brue
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