Answer to Question #91898 in Microeconomics for tira

Question

An economically efficient level of smoking:

a. means people would not smoke

b. occurs at the market equilibrium

c. would have to account for all costs but would be greater than zero

d. would have to increase to provide more jobs for farmers and tobacco workers

Answer 1

C)would have to account for all costs but would be greater than zero 

Some costs such as environmental pollution may not be reflected in the market equilibrium price