Despite the Warning on a Package of Cigarettes About the Potential

question 162

Multiple Choice

Despite the warning on a package of cigarettes about the potential health hazards of smoking, a man lights up a cigarette. What would an economist conclude?

• A) In the man's judgment, the expected marginal benefit of smoking the cigarette outweighs the expected marginal cost.
• B) In the man's judgment, the expected marginal cost of smoking the cigarette outweighs the expected marginal benefit.
• C) The man is behaving irrationally.
• D) The man has a positive marginal benefit.

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Definitions:

Competition

The rivalry between companies or individuals for market share, customers, sales, or recognition, driving innovation, quality, and value in services or products.

Infants

Legally refers to individuals who are under the age of majority, typically below 18 years, and are often considered incapable of entering into certain contracts or agreements.

Contract Law

The body of law that governs the creation and enforcement of agreements between parties.

Canada

A country in North America consisting of 10 provinces and 3 territories, known for its vast landscapes and multicultural diversity.