Problem
a) 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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.