A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it.

Name: A production quota on tobacco lowers the price of tobacco and the marginal cost of producing it.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A production quota typically reduces the supply of tobacco, which can lead to higher prices due to scarcity. The marginal cost of producing tobacco may not necessarily decrease as it depends on other factors such as input costs and efficiency.

A Production Quota on Tobacco Lowers the Price of Tobacco