Cost of capturing a cockatoo and transporting

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Reference no: EM13817920

Suppose that the cost of capturing a cockatoo and transporting him to the USA is $40 per bird. Cockatoo are drugged and smuggled in suitcases to the USA. Half of the smuggled birds die in transit. Each smuggled bird has a 10% probability of being discovered, in which case the smuggler is fined. If the fine imposed for each smuggled Cockatoo is $900, what is the equilibrium price of cockatoos in the USA?

Reference no: EM13817920

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