Matt fishes for tuna at a cost of $4 per ton. John fishes at a cost of $6 per ton. Each has a 1000 ITQ. The current market price is $8 per ton. What amount could Matt pay John to induce him to sell his ITQ?
A. $1000
B. $2000
C. $3000
D. It would not be profitable for Matt to buy John's ITQ
C. $3000
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The available data strongly suggest that, as the "needs" argument would suggest, the demand for health care is virtually perfectly inelastic
Indicate whether the statement is true or false
Assume the firms in a perfectly competitive industry are initially in long-run equilibrium and the cost of labor increases. How will the market adjust over time?
A) Firms will enter the market, causing price to rise until losses are eliminated. B) Firms will enter the market, causing price to fall until positive profits are eliminated. C) Firms will exit the market, causing price to rise until losses are eliminated. D) Firms will exit the market, causing price to fall until positive profits are eliminated.
The Sherman Antitrust Act of 1890
(a) did not specify what economic actions are legal. (b) said that only competitive economic actions were legal. (c) declared illegal every combination in restraint of trade. (d) declared none of the above.
Measuring "y" on the vertical axis and "x" on the horizontal axis, convexity of indifference curves implies that the MRS of "y" for "x"
A) is decreasing as "x" increases. B) is increasing as "x" increases. C) is constant as "x" increases. D) cannot be calculated for large levels of "x".