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

question 181

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.
• E) Cost to the government to pay the hospital expenses of indigent smokers.

---

Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are close substitutes, leading to price determination through supply and demand.

Average Total Costs

The total cost of production (fixed and variable costs combined) divided by the quantity of output produced, representing the cost per unit of output.

Competitive Market

A market structure characterized by a large number of sellers and buyers where no single party can influence the price.

Market Price

The present value at which a service or asset is available for purchase or sale within a specific market.