Explain why cigarette smoking is often described as a good with negative externalities. b) Why might a

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Explain why cigarette smoking is often described as a good with negative externalities.
b) Why might a tax on cigarettes induce the market for cigarettes to perform more efficiently?
c) How would you evaluate a proposal to ban cigarette smoking? Would a ban on smoking necessarily be economically efficient?
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Microeconomics

ISBN: 978-0073375854

2nd edition

Authors: Douglas Bernheim, Michael Whinston

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