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Melanie and Oli Are Competing Pacific Halibut Fishers

Question 76

Multiple Choice

Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $26; Oli's cost per ton is $31. If the market price of Pacific halibut is $37 per ton, what is the maximum amount Melanie would be willing to pay per ton for Oli's ITQs?


A) $6.
B) $31.
C) $11.
D) $37.

Correct Answer:

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