B1. You bought a $10 ticket in advance for a lacrosse game, a ticket that cannot be resold. You know that going to the lacrosse game will give you a benefit equal $20. After you have bought the ticket, you hear that there will be a CFL football game at the same time. Tickets to the football game cost $20, and you know that going to the football game will give you a benefit equal to $35. You tell your friends the following: "If I had known about the football game before buying the ticket to the lacrosse game, I would have gone to the football game instead. But now that I already have the tickets to the lacrosse game, it's better for me to just go to the lacrosse game." Are you making the correct decision? Justify your answer by calculating the benefits and costs of your decision. B2. To preserve the North Atlantic fish stocks, it is decided that only two fishing fleets, one from North America (Canada and the United States) and the other from the European Union (EU) can fish in those waters. The accompanying table shows the market demand schedule per week for fish from these waters. The only costs are fixed costs, so fishing fleets maximize profit by maximizing revenue. Price of fish Quantity of fish (per kilogram) demanded (kilograms) $17 1800 16 2000 15 2100 14 2200 12 2300 (a) If both fishing fleets collude, what is the revenue-maximizing output for the North Atlantic fishery? What price will a kilogram of fish sell for? (b) If both fishing fleets collude and share the output equally, what is the revenue to the EU fleet? To the North American fleet? (c) Suppose the EU fleet cheats by expanding its own catch by 100 kilograms per week. The North American fleet doesn't change its catch. What is the revenue to the North American fleet? To the EU fleet? (d) In retaliation for the cheating by the EU fleet, the North American fleet also expands its catch by 100 kilograms per week. What is the revenue to the North American fleet? To the EU fleet