In the Absence of Government Interference, There Is a Constant

question 17

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 is seized is .10 and the fine if a shipper is caught is $45 per ounce, then the equilibrium price of marijuana per ounce is

• A)$50.
• B)$9.50.
• C)$10.56.
• D)$4.50.
• E)$5.50.

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Definitions:

Cognitive Therapy

A type of psychotherapy that emphasizes the role of cognitive processes in the development and maintenance of psychological disorders, aiming to alter maladaptive thinking patterns.

Cognitive Therapy

A form of psychological treatment that focuses on changing unhelpful or dysfunctional thoughts, beliefs, attitudes, and behaviors, aiming to improve emotional regulation and develop personal coping strategies.

Psychoanalysis

A therapeutic approach and theory of psychology developed by Sigmund Freud, focusing on unconscious motives and conflicts.

Token Economy

A behavioral modification technique where desired behaviors are reinforced with tokens that can be exchanged for rewards.