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 $25. If the market price of Pacific halibut is $35 per ton, and Melanie and Oli both catch their quota, their combined profit will be

A) $10,000.
B) $15,000.
C) $25,000.
D) $35,000.

ITQs

Stands for Individual Transferable Quotas, a regulatory tool in fisheries management that limits the total allowable catch and allocates quotas to individuals or companies.

Pacific Halibut

A species of flatfish found in the North Pacific Ocean, valued for commercial and recreational fishing.

Quota

A government-imposed trade restriction that limits the number or value of goods that can be imported or exported during a specific time.