Which of the Following Will Cause the Marginal Cost Curve

question 86

Multiple Choice

Which of the following will cause the marginal cost curve of making cigarettes to shift?

• A) a $5 million penalty charged to each cigarette maker
• B) a $1 per pack tax on cigarettes
• C) a $1 million advertising campaign by the American Cancer Society
• D) All of the above.

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Definitions:

Supply and Demand

Fundamental economic model describing how prices vary as a result of a balance between product availability and consumers' purchasing desires.

Opportunity Cost

The financial loss associated with rejecting the subsequent preferable choice when deciding or selecting amongst various options.

Specialization

The process of focusing on and becoming expert in a particular subject or skill, or of businesses, regions, or nations concentrating on producing certain goods or services.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, essentially what is given up when choosing one option over another.