Final answer:
The proposed ban on smoking in Tobaccoville has a total benefit of $200 million to the population and a total cost of $10 million to the tobacco companies. The net benefit is positive; however, the policy's passage depends on political, public, and corporate responses.
Step-by-step explanation:
The local government of Tobaccoville is considering a ban on smoking in restaurants which involves both costs and benefits to different stakeholders. The total benefit to the population, assuming there are 1 million residents, would be significant. Each person is assumed to benefit by $200, so the total benefit would be $200 million (1,000,000 people × $200 per person). On the cost side, the two large tobacco companies would face a cost of $5 million each, leading to a combined total cost of $10 million. When comparing the overall benefits and costs, the benefits ($200 million) far exceed the costs ($10 million).
Whether the policy will pass depends on various factors, including political influences, public opinion, and the lobbying power of the tobacco companies. While the net benefit appears positive, these real-world considerations could significantly impact the outcome.