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2. Weed Suppose that there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. But whenever the

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2. Weed Suppose that there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. But whenever the marijuana authorities find marijuana growing or in the hands of dealers, they seize the marijuana and fine the supplier. Suppose that the probability that marijuana is seized is 0.3 and that the fine if you are caught is $10 per ounce. Dealers are price takers. a. If the \"street price\" is P per ounce, What is the expected revenue net of fines to a dealer from selling an ounce of marijuana? And What is the equilibrium price of marijuana? b. Suppose that the demand function for marijuana is the equation Q = 100 P. If all confiscated marijuana is destroyed, what will be the equilibrium consumption of marijuana? Suppose that confiscated marijuana is not destroyed but sold on the open market. What will be the equilibrium consumption of marijuana

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