Joe fishes for swordfish at a cost of $6 per ton. Ronny fishes at a cost of $4 per ton. Both have one 1000 ITQ and the current market price is $10 per ton. If Joe sold his ITQ to Ronny for $7000, he and Ronny would:
A. Make the sale because they're both better off
B. Not make the sale because Joe is better off and Ronny is not
C. Not make the sale because Ronny is better of and Joe is not
D. Not make the sale because neither is better off
B. Not make the sale because Joe is better off and Ronny is not
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Only individuals choose, which means
A) only individuals exist. B) collectives do not exist. C) only individuals can assess the expected costs and benefits of an action. D) all of the above.
Car A gets 20 miles per gallon, and sells for $17,000. Car B gets 40 miles per gallon, and sells for $34,000. In the economic way of thinking, which car is more efficient?
A) Car A B) Car B C) Both are equally efficient. D) It depends on the car buyer's estimate of cost and benefit. E) It depends on a number of statistical tests done by economists, the results of which are not stated in the question.