Why is the negative externality of smoking economically inefficient?

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Edison Ankunding asked a question: Why is the negative externality of smoking economically inefficient?
Asked By: Edison Ankunding
Date created: Sat, Mar 20, 2021 6:13 PM
Date updated: Sat, Oct 1, 2022 7:36 PM

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Top best answers to the question «Why is the negative externality of smoking economically inefficient»

Cigarettes are harmful to society because they produce a negative externality. This is because the consumption of cigarettes have a spillover effect on third parties and no compensation is paid by anyone… This results in an allocative inefficiency is achieved by the industry producing the cigarettes.

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