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Please explain and show work! thank you! 2. Weed Suppose that there is a constant marginal cost of $5 per ounce for growing marijuana and

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Please explain and show work! thank you!

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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 ne 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 nes 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 conscated marijuana is destroyed, what will be the equilibrium consumption of marijuana? Suppose that conscated marijuana is not destroyed but sold on the open market. What will be the equilibrium consumption of marijuana? c. If there were increasing rather than constant marginal cost in marijuana production, do you think that consumption would be greater if confiscated marijuana were sold than if it were destroyed

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