Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1000 ITQ and the current market price is $5 per ton. If Dave sold his ITQ to Sue for $2000, he and Sue would:
A. Make the sale because they're both better off
B. Not make the sale because Sue is better off and Dave is not
C. Not make the sale because Dave is better of and Sue is not
D. Not make the sale because neither is better off
A. Make the sale because they're both better off
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If the bidders at a first-price auction have true values of $8, $7, $6, and $5, the item will sell for
a. $8 b. $7 c. just over $8 d. just under $7
Used car dealers are able to make a profit by buying used cars at a low price and selling them at a higher price because
a. they sell lemons b. they can take advantage of unsuspecting consumers c. they are attempting to maximize their profits d. the transaction costs to some buyers is less than it would be without the used car dealers e. there are no transaction costs associated with the process of buying a used car
Suppose that medical technicians and nurses' aides are not unionized. If the nurses' aides unionize, then the wages of
a. both medical technicians and nurses' aides will rise. b. both medical technicians and nurses' aides will fall. c. medical technicians will rise, and the wages of nurses' aides will fall. d. nurses' aides will rise, and the wages of medical technicians will fall.
What is the amount of tariff imposed on a ton of sugar?
A. $1 B. $1,000 C. $500 D. $50