Sue Fishes for Cod at a Cost of $2 Per

question 293

Multiple Choice

Sue fishes for cod at a cost of $2 per ton, while Dave fishes at a cost of $4 per ton. Both have one 1,000-ton ITQ and the current market price is $5 per ton. If Dave offered to sell his ITQ to Sue for $2,000, he and Sue would

• A)make the sale because they're both better off.
• B)not make the sale, because Sue is better off and Dave is not.
• C)not make the sale, because Dave is better of and Sue is not.
• D)not make the sale, because neither is better off.