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The public unoking of cigarettes generates costs to society from second hand smoke, therefore, cigarette production Imposes costs on people who do not smoke. Moreover,

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The public unoking of cigarettes generates costs to society from second hand smoke, therefore, cigarette production Imposes costs on people who do not smoke. Moreover, private consumption of cigarettes can start apartment building and wild firm that sho impose costs on non smokers. Luckily, fire extinguishers can help prevent the spread of fines. Suppose that the government can imtitute either a ticion cigarette producers, or a subaldy to cigarette producers, to bring the private production costs in line with social costs. Identify where the socially optimal equilibrium would be

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