If private contracting is impossible in producing cigars, too few cigars would be produced and consumed. If all costs are taken into account, the market price of cigars is too low.
The government usually bows to the will of the people and if many people don't like cigars, the government won't produce it so few will be consumed.
The fact that many people are affected negatively by the smell of cigars means that cigars are too cheap if the healthcare costs to people are taken into account.
Find out more on the negative effects of smoking at https://brainly.com/question/26187004.
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