Linda fishes for mahi mahi at a cost of $10 per ton. Tessa fishes at a cost of $8 per ton. Both have one 1000 ITQ and the current market price is $13. If Linda sold her ITQ to Tessa for $4000, society would benefit from:
A. More fish being caught
B. Less fish being caught
C. An efficiency saving in fishing costs of $2000
D. An efficiency saving in fishing costs of $5000
C. An efficiency saving in fishing costs of $2000
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If Carla can pick more oranges in one hour than Benjamin, then Carla definitely has a comparative advantage in picking oranges
Indicate whether the statement is true or false
In the classical model, a 20 percent increase in the money growth rate leads to:
a. a 20 percent inflation rate. b. a 23 percent increase in the inflation rate. c. no change in the inflation rate. d. a 20 percent increase in the inflation rate.
For the efficient level of output to be produced, marginal
A. social cost must be zero. B. benefit must equal marginal private cost. C. benefit must equal marginal social cost. D. private cost must equal zero.
Which is NOT an example of moral hazard
a. people eat more at all-you-can-eat buffets b. loggers select the most profitable trees to harvest even when they are paying a fixed fee c. Drivers of heavier, safer cares are more likely to run stop signs d. workers on commission work harder than those paid an hourly wage