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:

Shareholders

Shareholders are individuals or entities that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.

Corporate Governance

The framework of rules, practices, and processes by which a company is directed and controlled, ensuring accountability and aligning with stakeholders' interests.

CEO

Chief Executive Officer, the highest-ranking executive in a company, who makes major corporate decisions, manages the overall operations and resources, and acts as the main point of communication between the board of directors and corporate operations.

Financial Records

Documents that track the financial activities and condition of an organization or individual, including income, expenses, assets, and liabilities.