Which of the following will cause the marginal cost curve of making cigarettes to shift?

Which of the following will cause the marginal cost curve of making cigarettes to shift?



A) A $5 million penalty charged to each cigarette maker.
B) A $1 per pack tax on cigarettes.
C) A $1 million advertising campaign by the American Cancer Society.
D) All of the above.


Answer: A $1 per pack tax on cigarettes.


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