Suppose That the Cost of Capturing a Cockatoo and Transporting

question 13

Multiple Choice

Suppose that the cost of capturing a cockatoo and transporting him to the United States is about $40 per bird.Cockatoos are drugged and smuggled in suitcases to the United States.Half of the smuggled cockatoos die in transit.Each smuggled cockatoo has a 10% probability of being discovered, in which case the smuggler is fined.If the fine imposed for each smuggled cockatoo is increased to $1,000, then the equilibrium price of cockatoos in the United States will be

• A)$311.11.
• B)$140.
• C)$90.
• D)$70.
• E)$222.22.

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Definitions:

Gastric Decompression

A medical procedure to relieve pressure and remove contents from the stomach, often using a tube inserted through the nose or mouth.

Salem Sump

A type of nasogastric tube used for decompression, removing gases and liquids from the stomach, often used postoperatively or for patients with gastrointestinal conditions.

Ostomy Pouch

An ostomy pouch is a medical device attached to the abdomen to collect waste from the body when the natural pathway is not possible due to surgical reasons like colostomy or ileostomy.

Ideal Time

The most favorable or optimum period within which a certain action or condition is best to occur or be achieved.