=+smuggling a pack of cigarettes could go until a North Texarkanan no longer found it profitable to

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=+smuggling a pack of cigarettes could go until a North Texarkanan no longer found it profitable to smuggle. Explain your diagram. i. Still assume that demand for cigarettes in North Texarkana is perfectly inelastic and that all smokers in North Texarkana are smuggling their cigarettes at a cost of $1.85 per pack, so no tax is paid. Is there any inefficiency in this situation? If so, how much per pack? Suppose chip-embedded cigarette packaging makes it

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Economics

ISBN: 9781319066604

5th Edition

Authors: Robin Krugman, Paul Wells

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