Q. "The U.S. cigarette organization has negotiated with Congress also government agencies to settle liability claims against it. Under the proposed settlement, cigarette companies will make fixed annual payments to the government based on their historic marketplace shares. Assume a manufacturer estimates its marginal cost at $1.00 every pack, its own price elasticity at -2 also set is price at $2.00. The company's settlement obligations are expected to raise its average total cost every pack by about $.60. Illustrate what effect wills this have on its optimal price?"