Kara and Kyle Are Competing Sockeye Salmon Fishers

question 260

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, and Kara and Kyle both catch their quota, their combined profit will be

• A)$6,000.
• B)$14,000.
• C)$20,000.
• D)$30,000.

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