Kara and Kyle Are Competing Sockeye Salmon Fishers

question 102

Multiple Choice

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, what is the minimum amount per ton that Kara would have to offer Kyle to convince him to sell Kara his ITQs?

• A) $3
• B) $4
• C) $5
• D) $7

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Definitions:

Social Conformity

The act of adjusting one's thoughts or behaviors in order to fit in with the norms or standards of a social group or society.

Door-In-The-Face Effect

A compliance technique whereby a large, unreasonable request is made first, followed by a smaller, more reasonable request, which is the actual desired outcome.

Social Loafing

is the phenomenon where individuals exert less effort to achieve a goal when they work in a group than when they work alone.

Compliance

The act of conforming to a request, rule, or expectation.