Which of the following would be a private cost of smoking to a cigarette smoker?
A) cost to a private firm of the higher health insurance premiums due to the hiring of a smoker
B) cost to a private firm of the reduced productivity of a smoker, who misses days of work as a result of smoking
C) cost to the city of extra park lawn cleanup due to the presence of cigarette butts
D) price of a pack of cigarettes
E) cost to the government to pay the hospital expenses of indigent private smokers
Correct Answer:
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Q52: Which of the following is an example
Q53: In the absence of externalities, the optimal
Q54: Supply and demand curves can only reflect
A)
Q55: When externalities are present in market activity
Q56: Producing where P = MC does not
Q58: Which of the following would be an
Q59: Which of the following would be an
Q60: When negative externalities are present, the firm's
Q61: The social (or true) cost of producing
Q62: Social cost is
A) private cost minus external
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