Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $36; Oli's cost per ton is $40. If the market price of Pacific halibut is $48 per ton, what is the minimum amount per ton that Melanie would have to offer Oli to convince him to sell Melanie his ITQs? Multiple Choice
Q: Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit…
A: In a market, when government imposes tradable permits to the firms such as trading of pollution…
Q: City-wide lockdowns were implemented in Sydney by the NSW government in July-August 2021 in response…
A: Anwer - Given in the question- City-wide lockdowns were implemented in Sydney by the NSW government…
Q: ART A Which of the following statements is true? A. In a finitely repeated prisoner’s dilemma,…
A: Answer - "Thank you for submitting the questions.But, we are authorized to solve one question at a…
Q: Differentiate between Riba-al-Nasia and Riba-al-Fadl with examples of each.
A: Hey, thank you for the question. Since there are multiple questions posted, we will answer the first…
Q: 3. Following are portions of the demand curves of three individuals for the water quality in a small…
A: Socially efficient level is that level where marginal cost is equal to marginal willingness to pay…
Q: Price (per kilo) 3 4 5 6 FirmA(000 kg) 10 20 30 40 Firm B(000kg) 10 15 20 25 Firm C(000kg) 15 28…
A: Price elasticity of supply (PES) is the responsiveness of a percentage change in quantity supplied…
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: The markets are the place where the buyers and the sellers of goods and services, and other products…
Q: Suppose the inverse demand curve on ore is P = 95 - 0.19 Q. Ore can obtained through a recycling…
A: * SOLUTION :-
Q: Suppose that the following graph shows a free market equilibrium, with Qe as the equilibrium…
A: The market equilibrium is the point where there will be no excess demand or supply in the economy.…
Q: Suppose there are 100 farmers each with 10 acres that overlie a common groundwater aquifer. They all…
A: The total productivity is the total good produced by the given inputs. Average productivity refers…
Q: The competitive market equilibrium is allocatively efficient because a) At the equilibrium…
A: Allocative effectiveness truly intends that among the points on the creation plausibility outskirts,…
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: Given that in the rural area of a large agricultural-based company in which corn is the staple food.…
Q: Ilsia is driving home from work. She needs to buy gas and notices an Exxon-Mobil station on one side…
A: a.The most likely reason that the price is the same is that Whatever price a gas station charges.…
Q: If the pandemic causes firms in a competitive industry to spend $100,000 per month on safety…
A: Meaning of Perfect Competition: The term perfect competition refers to the market under which…
Q: which statement is correct Price ceilings and price floors usually reduce the welfare of society…
A: At the marketplace, market price is the determinants of market situation as a change in market price…
Q: a) Examine the market structure of the corn market. Draw a suitable corn market and also an…
A: A market is a place where buyers and sellers can gather to facilitate the exchange of goods and…
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: There are large number of buyers, i.e., citizens, and sellers, i.e., farmers. Also, the farmers are…
Q: Suppose that the following graph shows a free market equilibrium, with Qg as the equilibrium…
A: Equilibrium quantity and supply are determined where demand and supply are equal. In the given…
Q: Consider a nonrenewable resource that can be consumed either today (period 1) or tomorrow (period 2)…
A: Demand curve for 1st period: P1 = 30 - 5Q1 Demand curve for 2nd period: P2 = 30 - 5Q2 Total Supply…
Q: Two consumers, Smith and Jones, have the following demand curves for recorded operas broadcasts on…
A: There are only two consumers- Smith and Jones Inverse Demand of Smith : PS=12-Q Inverse Demand of…
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: Corn's original demand and supply are ascertained by market demand and supply.
Q: In Rivendell live the finest jewellery making elves. The local demand and supply of jewelleries in…
A: In a perfectly competitive market, equilibrium is attained at a level where the demand and supply in…
Q: What is the reservation price ($/campsite ) for campsites? 0 100 1000 Suppose Yosemite Valley…
A: The reservation price can be calculated by putting demand equal to 0.
Q: Mr. Kamran Ali is building houses in Karachi. He has analyzed the market carefully, and he knows…
A: Profit maximizing quantity is where marginal revenue equals marginal cost.
Q: Two firms, A and B, each currently dump 100 tons of pollutants into the air. The government has…
A: Given: Two firms A and B each currently dump = 100 tons The cost for firm A = $30 for each ton The…
Q: Californian farmers are able to sell as many avocados as they want Question 31 options: as…
A: We can assume that the market for avocados in California is perfectly competitive in nature, given,…
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: Farmer is the producer and their products price are determined by the market demand and supply at…
Q: A producer is willing to produce 3 units at 3 dollars per unit and another producer is willing to…
A: Producer surplus defines a quantitative measure to estimate the benefit or gain received by a seller…
Q: 11. Suppose Jacob and Julius are the only 2 consumers in a market. Jacob's demand curve for TVs is…
A: From the equations in the question, we see that the demand of Jacod abd Julius is given.From the…
Q: The government wants to increase ecotourism by using farmland to establish special habitats for…
A: Ecotourism refers to the catering of wishes of tourists who wants to experience nature and the…
Q: In the selling process or in negotiations, who typically has the upper hand, the buyer or the…
A: Introduction: The contact between a salesman and a potential buyer is referred to as the selling…
Q: Within the remote nation of New Hope, total industrial production is currently creating a constant…
A: Given- Total industrial production is currently creating a constant level of GDP that results or…
Q: The magazine Science 84 planned to announce a contest in which anyonecould submit a request for…
A: a) To get to the Nash equilibrium, one class has 19,999 people asking for $100 and the other that is…
Q: The equilibrium level of tuition at York U is $ per academic year. If York U sets its tuition at…
A: The level where the quantity demanded by individuals is equal to the quantity supplied by producers…
Q: rket. Draw a suitable corn market and also an individual farmer’s demand and supply diagrams to…
A: When price and quantity are market determined, then a competitive market structure is followed. In…
Q: Suppose Gil can write a poem in 1 hour, Holly can write a poem in 2 hours, and Ivan can write a poem…
A: Given: Gil can write a poem in 1 hour, Holly can write a poem in 2 hours, and Ivan can write a poem…
Q: If we have the following commodity: QD1=20-5P1+7P2 QD2=15+5P1-1OP2 QS1=-7+2P1 QS2=8+12P2 2. Then the…
A: At Equilibrium Price, quantity demanded is equal to quantity supplied
Q: Suppose that the government decides to issue 2 tradable permit to reduce pollution to 2 tons of CO?…
A: Abatement Cost is defined as a cost which is incurred by the firms when they are required to reduce…
Q: Suppose that pig farming in a region is a perfectly compet- itive industry. However, one negative…
A: In the above question, it is given that : Suppose that pig farming in a region is a perfectly…
Q: Assume that candle wax is traded in a perfectly competitive market in which the demand curve…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: The figure below shows Angela and Bruno's feasible frontier, Angela's biological survival…
A: When Angela's work hours are determined in such a way that the slope of Angela's reservation…
Q: Refer to the following: PX = 666 − 0.5QX −2QY Py = 484.5 − 1.5QY − 0.25QX MCX = 20 + 2QX MCY…
A: Given: PX = 666 − 0.5QX −2QY Py = 484.5 − 1.5QY − 0.25QX MCX = 20 + 2QX MCY = 4 + QY
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: Answer-
Q: Sean is a community college student and has been saving his tips from his job waiting tables at a…
A: Answer: Economically efficient outcome refers to the outcome where the total surplus in the economy…
Q: Define the production factors with examples for Hajji Ali Farms in Bahrain
A: The factor of Production for farming are Natural Resources, labour and capital.
Q: In the rural area of a large agricultural-based economy in which corn is the staple food, there are…
A: A perfectly competitive market is the one where there are large number of buyers and sellers of the…
Q: Producers' Surplus The manufacturer of a brand of mattresses will make x hundred units available in…
A: a) We have a supply function, S(x) = p = 150+70e^0.06x Here, p = unit price in dollars of 1 mattress…
Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $36; Oli's cost per ton is $40. If the market
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Melanie and Oli are competing Pacific halibut fishers. Both have been allocated ITQs that limit their catch to 1,000 tons of Pacific halibut each. Melanie's cost per ton is $20; Oli's cost per ton is $28.Refer to the information given and assume that the market price of Pacific halibut is $40 per ton. If Melanie pays Oli $10 per ton for his ITQs and then catches her new limit of 2,000 tons, their combined profit would be: $28,000. $32,000. $40,000. $54,000.Kara and Kyle are competing sockeye salmon fishers. Both have been allocated ITQs that limit their catch to 2,000 tons of sockeye salmon each. Kara's cost per ton is $8; Kyle's cost per ton is $12. If the market price of sockeye salmon is $15 per ton, and Kara and Kyle both catch their quota, their combined profit will be Multiple Choice $20,000. $14,000. $30,000. $6,000.Billy Penny is trying to determine how many units of two types of lawn mowers to produce each day. One of these is the Standard model, while the other is the Deluxe model. The profit per unit on the Standard model is $60, while the profit per unit on the Deluxe model is $40. The Standard model requires 20 minutes of assembly time, while the Deluxe model requires 35 minutes of assembly time. The Standard model requires 10 minutes of inspection time, while the Deluxe model requires 15 minutes of inspection time. The company must fill an order for 6 Deluxe models. There are 450 minutes of assembly time and 180 minutes of inspection time available each day. How many units of each product should be manufactured to maximize profits?
- A Gain from Trade occurs when a unit is sold for a price greater than the unit of the good is worth to a seller and, simultaneously, bought for a price less than the good is worth to a buyer. Consider the first 2 units of the good that would be sold in this market (the vertical red line on the graph). Which answer choices are correct? If Kai and Mint sold one unit each to Gob and Yam at a price of $6, the trade would be mutually beneficial. At a price of $6, Gob would benefit by $3 because she is paying $6 for a unit of the good which is worth $9 to her. At a price of $6, Kai would benefit by $4 because she is getting $6 for a unit of the good which is worth $2 to her. For the first 2 units of the good there is potential gain from trade of $7 for each of the 2 units. For the first 2 units of the good sold the difference between the value to buyer and seller is $9 each. This means there is a potential gain from trade of $9 per unit. If the first 2 units of the…If there is only one buyer and one seller meeting to exchange, then any price that they agree upon must be between the willingness to pay of the buyer and the willingness to sell of the seller.True or FalseThe average cost of landscaping services for members of a condominium community is $350 per week. Assume that the quantity of landscaping services is perfectly correlated with the number of gardeners per week. Suppose the community consists of seven residents, each with the identical marginal benefit curve for landscaping services. The marginal benefit of the first gardener is $100 per resident. a) How many gardeners would be hired if their services were sold in a market to individual buyers at a price of $350 per week? Explain why the market arrangement is inefficient.
- Two firms, Incumbent & Entrant, can produce the same good. The market demand for the good is given by P = 180 – Q, where P is the market price and Q is the market quantity demanded. The firms must pay w = 45 per unit of output for labour and r = 45 per unit of output for capital (one unit of capital is used per unit of output), but Incumbent may choose capacity KI units of capital before Entrant decides whether to enter the market. Suppose firms each have fixed costs FI =600, FE=500. Incumbent chooses (as a Stackelberg leader) capacity KI equal to the monopoly profit- maximizing quantity. When you answer the following questions, show your work. a. Would Incumbent be able to prevent entry by choosing capacity KI equal to the monopoly profit-maximizing quantity? Explain. b. What is the Incumbent’s equilibrium choice of capacity KI in this Dixit game? c. Does the Incumbent’s choice of capacity KI in part (b) qualify as predatory conduct (here, limit output)? Explain.There are five students who are looking to buy one second-hand textbook each. Their willingness-to-pay are $5, $6, $8, $12, and $15, respectively. Based on this information, which of the following statements is correct? Select one: a. If a seller is one of many identical sellers and his reservation price is $8, then he is guaranteed to sell his textbook. b. To sell three books, the maximum price that can be charged is $8. c. The student with a willingness-to-pay of $15 is the richest. d. Their willingness-to-pay indicates an upward-sloping demand curve.Suppose Kenji is willing to pay a total of $180,000 for an antique car. True or False: Keeping his maximum willingness to pay for an antique car in mind, Kenji will buy the antique car because it would be worth more to him than its market price of $225,000. True False
- Suppose Gil can write a poem in 1 hour, Holly can write a poem in 2 hours, and Ivan can write a poem in 3 hours. Each person spends 12 hours per day writing poems and requires a wage of $10 per hour to do so. How many poems per day will these three writers produce if the market price for a poem is $25?JetBlue and Delta are the only two major airlines with regularly scheduled service between New York and Nantucket. There are 900 potential passengers every week, each of whom is willing to pay up to $400 for a ticket. Since the two airlines provide an essentially identical (bad) service, customers simply prefer to buy from the cheaper one. (If they charge the same price, then they will split the market equally.) Each airline can transport at most 1200 passengers each week. You can safely assume that each airline spends literal peanuts (i.e., zero) serving passengers; however, each passenger displaces air cargo that is worth $160 in profits to the carriers. Suppose that each airline takes a short-run perspective and only wants to maximize each week's profits, and that neither one would consider shutting down the route in the foreseeable future. (a) What is the appropriate economic model to study price competition in this market? (b) If you use Nash equilibrium to make a prediction, what…JetBlue and Delta are the only two major airlines with regularly scheduled service between New York and Nantucket. There are 900 potential passengers every week, each of whom is willing to pay up to $400 for a ticket. Since the two airlines provide an essentially identical (bad) service, customers simply prefer to buy from the cheaper one. (If they charge the same price, then they will split the market equally.) Each airline can transport at most 1200 passengers each week. You can safely assume that each airline spends literal peanuts (i.e., zero) serving passengers; however, each passenger displaces air cargo that is worth $160 in profits to the carriers. Suppose that each airline takes a short-run perspective and only wants to maximize each week's profits, and that neither one would consider shutting down the route in the foreseeable future. (a) What is the appropriate economic model to study price competition in this market? (b) If you use Nash equilibrium to make a prediction, what…