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Will cost increase make tobacco companies better or worse

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Some of the recent attempts to curb smoking have proposed a ban on all cigarette advertising aimed at teenagers and young people, for example, in television, billboards, magazines, and sporting events. We can think of this as a cost increase in advertising, considered as the cost of targeting a given potential smoker. Will this cost increase make the tobacco companies better or worse off, and will it lead to higher or lower prices for cigarettes?

Reference no: EM13874562

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