Cockatoos are a kind of parrot that are often caught in the Australian wild and smuggled into the U. S. for sale on Craig's List as pets. This is illegal, but it happens anyway and the market is perfectly competitive. Suppose that the cost of capturing a cockatoo and transporting it to the U. S. is about $50 per bird. Typically, they are drugged and smuggled to the U. S. in suitcases. Half of the smuggled cockatoos die in transit. Each smuggled cockatoo (whether dead or alive) has a 20% probability of being discovered, in which case the cockatoo is confiscated and the smuggler is fined. If the fine imposed for each smuggled cockatoo is $1,000, then the equilibrium street-price of cockatoos in the U. S. will be A)$433.33 B)$500.00 C)$250.00 D)$50.00 E)$625.00

The monthly demand equation for an electric utility company is estimated to be p equals 60 minus left parenthesis 10 superscript negative 5 baseline right parenthesis x, where p is measured in dollars and x is measured in thousands of killowatt-hours. the utility has fixed costs of $3 comma 000 comma 000 per month and variable costs of $32 per 1000 kilowatt-hours of electricity generated, so the cost function is upper c left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 32 x. (a) find the value of x and the corresponding price for 1000 kilowatt-hours that maximize the utility's profit. (b) suppose that the rising fuel costs increase the utility's variable costs from $32 to $38, so its new cost function is upper c 1 left parenthesis x right parenthesis equals 3 times 10 superscript 6 baseline plus 38 x. should the utility pass all this increase of $6 per thousand kilowatt-hours on to the consumers?