The table below sets out the costs for two milk producers. Producers receive $12 per litre. Each firm has been allocated quotas that permit output of 200 litres per day. If production costs are constant and the costs of entry and exit are zero, what is the highest price firm Y would be willing to pay (per day) to purchase X’s quota?
- A$400
- B$600
- C$1000
- D$1400