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.

---

Definitions:

Savings

Money set aside for future use that is not currently spent on consumption or expenses.

Correlation Coefficient

A metric that determines the intensity and orientation of a linear connection between two variables.

T Test

A statistical test used to determine if there is a significant difference between the means of two groups which may be related in certain features.