Exhibit 14-2 Cigarette smoking data Jack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s):

As shown in Exhibit 14-2, if non-smokers have a right to a smoke-free environment, and smokers have the right to negotiate, how many days of life will Jill lose?

Question

Exhibit 14-2 Cigarette smoking data Jack enjoys smoking, while Jill fears that second-hand smoke will shorten her life. The following table shows the value Jack places on each cigarette he smokes, and the value Jill places on her shortened life. Use the table to answer the following question(s) :

As shown in Exhibit 14-2, if non-smokers have a right to a smoke-free environment, and smokers have the right to negotiate, how many days of life will Jill lose?

Quizplus · Accepted Answer

Jill's value for each day of life is $200,000, and the value Jack places on each cigarette is $50. For Jill to lose 1 day of life, the cost of that day ($200,000) would have to be less than the benefit Jack gets from smoking one cigarette ($50). Since $200,000 is greater than $50, Jill would not lose 1 day of life. However, if Jack smokes 4 cigarettes, the total benefit he gets ($200) would be greater than the cost of 1 day of Jill's life ($200,000), so Jill would lose 3 days of life. Therefore, the answer is C.

Exhibit 14-2 Cigarette Smoking Data Jack Enjoys Smoking, While Jill