In the Absence of Government Interference, There Is a Constant

question 27

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 .50 and the fine if a shipper caught is $40 per ounce, then the equilibrium price of marijuana per ounce is

• A)$50.
• B)$45.
• C)$2.50.
• D)$25.
• E)$7.50.

---

Definitions:

Scanner

An optical device that converts printed matter into a format that can be read by the computer and inputs the converted information.

Radial Artery

An artery located in the groove on the thumb side of the inner wrist, where the pulse is taken on adults.

Degrees Fahrenheit

A temperature scale where the freezing point of water is 32 degrees and the boiling point is 212 degrees under standard atmospheric conditions.

Celsius

A scale of temperature on which water freezes at 0° and boils at 100° under standard conditions.