In 1969, tobacco companies were the largest single product advertisers on television. That same year, the Surgeon

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In 1969, tobacco companies were the largest single product advertisers on television. That same year, the Surgeon General of the United States released a report linking smoking to adverse health consequences. Shortly thereafter, the federal government banned cigarette companies from advertising on television. Suppose you were an executive at a tobacco company at that time. Read Section 11.1 carefully, then explain how you might react to the federal government's advertising ban, and why.
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Microeconomics

ISBN: 978-1464187025

2nd edition

Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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