Final answer:
The proposed smoking ban in Tobaccoville presents total benefits of $200 million to its residents with total costs of $10 million to tobacco companies, leading to a net benefit of $190 million. The ban's passage will depend not only on these economic calculations but also political and social factors.
Step-by-step explanation:
A scenario is posed where the government of Tobaccoville is contemplating a ban on smoking in restaurants within the city limits. To analyze the costs and benefits of this proposed policy, we can calculate the overall impact on the population and the tobacco companies. With 1 million residents each benefitting by $200 from the ban, the total benefits equate to $200 million. Conversely, the two large tobacco companies would incur costs of $5 million each, totaling $10 million in costs.
Therefore, the proposed policy's total benefits are $200 million, and the total costs are $10 million. Considering the considerable net benefit ($190 million), one could argue that there's a strong economic incentive for the policy to pass. However, whether the policy will pass also depends on political dynamics, lobbying power of the tobacco companies, and public opinion.