Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer A / BBubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot eat shrimp. Each day

Please answer A/BBubba is a shrimp farmer. In an ironic twist, Bubba is allergic to shellfish, so he cannot eat shrimp. Each day he has a one-tonne supply of shrimp. The market price of shrimp
is $10,500 per tonne.
a. What is the value of a tonne of shrimp to him?
b. Would this value change if he were not allergic to shrimp? Why or why not?
a. What is the value of a tonne of shrimp to him? (Select the best choice below.)
A. The value of a tonne of shrimp to Bubba is less than $10,500 because Bubba is allergic to shellfish.
B. The value of a tonne of shrimp to Bubba is $10,500 because that is the market price.
C. The value of a tonne of shrimp to Bubba is more than $10,500 because he can wait for the market price to go up.
D. The value of a tonne of shrimp to Bubba is less than $10,500 because shrimp is a perishable item.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Business Finance

Authors: Brian Watts

8th Edition

0712110720, 978-0712110723

More Books

Students also viewed these Finance questions

Question

1. What are the cultural expectations of women in your culture?

Answered: 1 week ago

Question

Who will receive the final evaluation?

Answered: 1 week ago