Kara and Kyle Are Competing Sockeye Salmon Fishers

question 12

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. Refer to the information given.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:

Sedatives

Substances that induce sedation by reducing excitement, irritability, and nervousness, often used to promote calmness and ease anxiety.

Stimulants

Substances that increase alertness, attention, and energy by boosting the activity of the central nervous system.

Hallucinogens

Psychoactive substances that can cause altered perceptions, thoughts, and feelings.

Hallucinogen

A class of psychoactive substances that cause perceptual anomalies, sometimes including hallucinations, alterations in thought processes, and variations in consciousness.