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25. In the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers.

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25. 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 $25 per ounce, then the equilibrium price of marijuana per ounce is a. $8.33. b. $7.50. c. $30. d. $4.50. e. $5.50

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