N2

QUESTION 7 Chandler was having health problems because he had smoked on and off for two decades. He took his doctor's advice and stopped smoking in order to improve his health. Which of the following statements are true: Chandler's decision to stop smoking is likely to be a positive externality for his family and friends, due to the reduction in second hand smoke they receive. If Chandler's decision to quit smoking is a positive externality for his friends and family, they may be willing to compensate him to help him quit smoking. Chandler's decision to quit smoking would be optimal for him if the marginal social benefits are greater than the marginal social costs. The marginal social benefit curve, when Chandler decided to quit smoking, would lie to the left of the marginal private benefit curve