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 $20;Oli's cost per ton is $28. Refer to the information given.If the market price of Pacific halibut is $40 per ton,and Melanie and Oli both catch their quota,their combined profit will be:

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Quizplus · Accepted Answer

Melanie's profit = (Market price - Cost per ton) * Quantity = ($40 - $20) * 1000 = $20,000. Oli's profit = (Market price - Cost per ton) * Quantity = ($40 - $28) * 1000 = $12,000. Combined profit = Melanie's profit + Oli's profit = $20,000 + $12,000 = $32,000.

Melanie and Oli Are Competing Pacific Halibut Fishers