Ingvar and Olaf are the only two fishermen in their area. Each has been assigned an ITQ
Question:
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.
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Answer c 40 0 To maximize efficiency the two guys should trade ITQs until Ingvar i...View the full answer
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Related Book For 
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
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