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:
Verified
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