Intermediate Microeconomics and Its Application 12th Edition by Walter Nicholson,Christopher Snyder

تمرين 4

Some people argue that smokers create additional "externalities" in their behavior by driving up healthcare and insurance costs for nonsmokers. Are such effects "externalities"? How, if at all, do they distort the allocation of resources? How would an efficient market handle smoking risks in, say, health insurance premiums?