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.

Question

Quizplus · Accepted Answer

The imposition of a tax on cigarettes will increase the marginal cost of producing cigarettes, causing the marginal cost curve to shift upward. The other options may affect the demand for cigarettes or the profits of cigarette makers, but they do not directly impact the cost of production.

Which of the Following Will Cause the Marginal Cost Curve