In the Absence of Government Interference, There Is a Constant

question 28

Multiple Choice

in the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers.If the probability that any shipment of marijuana seized is .30 and the fine if a shipper caught is $50 per ounce, then the equilibrium price of marijuana per ounce is

• A)$28.57.
• B)$20.
• C)$55.
• D)$3.50.
• E)$6.50.

---

Definitions:

Indefinitely

An unspecified period of time without a predetermined end date.

Annual Rate

The interest rate for a whole year as opposed to a shorter period, commonly used in finance to compare the returns on investments or the cost of loans.

Charlie Company

A designation often used in military or tactical settings to refer to the third company in a given sequence, but may not have a widely recognized definition outside such contexts.

Anticipated Rate

The expected rate of return or interest rate foreseen on an investment or loan.