In the Absence of Government Interference, There Is a Constant

question 23

Multiple Choice

In the absence of government interference, there is a constant marginal cost of $4 per ounce for growing marijuana and delivering it to buyers.Suppose that government authorities seize shipments whenever they find them and resell the marijuana that they seize on the open market.The probability that any shipment of marijuana is seized is .50.If a shipment is seized, there is no other punishment besides loss of the marijuana that is seized.The effect of the government action is to

• A)raise the equilibrium price by $8.
• B)raise the equilibrium price by $4.
• C)lower the equilibrium price by $2.
• D)leave prices unchanged.
• E)raise the equilibrium price by $2.

---

Definitions:

Importing

The process of bringing data from an external source into a software application or system.

External File

A file stored outside of the current working document or database, which can be accessed or imported into the document.

PDF File

A Portable Document Format file, designed to present documents consistently across multiple devices and platforms, keeping the formatting intact.

View Data

The process or feature allowing users to access and see data stored in a database, application, or system.