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

question 62

Multiple Choice

Which of the following would be a private cost to a cigarette smoker?

• A) Cost to the employer of the higher health insurance premiums due to the hiring of a smoker.
• B) Cost to the employer of the extra effort lost due to the increased missed days of work as a result of smoking.
• C) Cost to the city of extra park cleanup due to the presence of cigarette butts.
• D) Price of the pack of cigarettes.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity produced, representing the cost per unit of output.

Contestable Market

A market with free entry and exit, where a company's prices and outputs are constrained by the threat of competition from potential entrants.

Economic Profit

The offset between total financial inflow and all encompassing outgoings, covering both specified and unspecified expenses.

Entry And Exit

Refers to the capability of businesses to freely enter into or exit from markets based on regulatory, economic, and market conditions, impacting competition and market dynamics.