Suppose That Smoking Creates a Negative Externality

question 409

Multiple Choice

Suppose that smoking creates a negative externality. If the government does not interfere in the cigarette market, then

• A)the equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked.
• B)the equilibrium quantity of cigarettes smoked will be greater than the socially optimal quantity of cigarettes smoked.
• C)the equilibrium quantity of cigarettes smoked will be less than the socially optimal quantity of cigarettes smoked.
• D)There is not enough information to answer the question.

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Definitions:

Micrometers

Units of length equal to one millionth of a meter, commonly used in science and engineering for precise measurements.

Millimeters

A metric unit of length equal to one thousandth of a meter, often used to measure small distances or dimensions.

Micrometers

Precision measuring devices capable of measuring extremely small distances, such as the thickness or diameter of an object.

Millimeters

A unit of length in the metric system, equal to one thousandth of a meter.