Which of the following would be a private cost to a cigarette manufacturer?
A) Price of leaf tobacco.
B) Cost to the government of the hospital expenses of indigent smokers.
C) Increased risk of cancer to the nonsmoking passengers in the smoker's carpool.
D) Price of a pack of cigarettes.

Question

Quizplus · Accepted Answer

The price of leaf tobacco is a private cost to a cigarette manufacturer because it is a direct expense incurred in the production of cigarettes.

Which of the Following Would Be a Private Cost to a Cigarette