Despite the Warning on a Package of Cigarettes About the Potential

question 182

Multiple Choice

Despite the warning on a package of cigarettes about the potential health hazards of smoking, a man lights up a cigarette. An economist would conclude that:

• A)​in the man's judgment, the expected marginal cost of smoking the cigarette outweighs the expected marginal benefit.
• B)​the man is behaving irrationally.
• C)​the smoker is unconcerned about his future health.
• D)​in the man's judgment, the expected marginal benefit of smoking the cigarette outweighs the expected marginal cost.