In the Absence of Government Interference, There Is a Constant

question 26

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 .10 and the fine if a shipper caught is $20 per ounce, then the equilibrium price of marijuana per ounce is

• A)$25.
• B)$4.50.
• C)$7.78.
• D)$7.
• E)$5.50.

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Definitions:

Colonization

The process by which a country takes control over foreign lands, territories, or peoples to exploit them economically, often accompanied by settlement and economic domination.

Free Blacks

African Americans who were not enslaved and had either gained freedom through manumission, legal emancipation, or were born to free black parents.

Slaveholders

Individuals or entities that own slaves, typically in the context of historical periods where slavery was legally recognized.

Sojourner Truth

A former slave who became an abolitionist and women's rights activist in the 19th century, known for her speech "Ain't I a Woman?"