Before it became illegal, cigarette manufacturers once relied heavily on TV advertising. According to the textbook, when the government banned TV advertising, the cigarette manufacturers:

A. supported the ban due to their concern over health effects of smoking.
B. were made worse off because the ban significantly reduced cigarette sales.
C. benefited because the decision about whether to advertise on TV was a prisoner's dilemma.
D. thought their First Amendment rights were being violated.


Answer: C

Economics

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