Suppose That the Cost of Capturing a Cockatoo and Transporting

question 17

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 $1,100, then the equilibrium price of cockatoos in the United States will be

• A)$150.
• B)$95.
• C)$73.
• D)$333.33.
• E)$244.44.

Comprehend the budgeting methods and financial considerations in marketing promotions.

Recognize non-traditional forms of advertising and measure their effectiveness.

Understanding the stages of cognitive development as proposed by Jean Piaget.

Recognizing key concepts in cognitive development, such as conservation, object permanence, and symbolic thought.

---

Definitions:

Discounted Note

A debt instrument sold for less than its face value that will pay the face value at maturity.

Proceeds

Maturity value less bank discount.

Contingent Liability

Liability on the part of one who discounts a note if the maker of the note defaults at maturity date.