In the Absence O5f Government Interference, There Is a Constant

question 24

Multiple Choice

in the absence o5f 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)$2.50.
• C)$25.
• D)$45.
• E)$7.50.

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Definitions:

Superego

A component of Freud's psychoanalytic theory, representing the moral conscience and the internalization of societal norms and principles.

Unconscious

The part of the mind that is inaccessible to conscious thought but that affects behavior and emotions, according to psychoanalytic theory.

Id

In psychoanalysis, a part of the mind in which innate instinctive impulses and primary processes are manifest.

Ego

Part of the psyche that mediates between the conscious, the unconscious, and reality, operating based on the reality principle, according to Freudian theory.