there's a very important reason why people buy 1 cigarette: they don't have the money for a 10 pack. When you're right at the bottom of the economic ladder, spending minimum absolute amounts is far more important than multi-buy value.
Oh, I can see myself buying single items that cost a little more, but not nails or 1 cigarette. I've seen retailers sell 1 cigarette and people would indeed buy them. It's also what attracted me to "group buys" before, so we can get 3 or 5 of something, but there are 5 of us participating, so we all get the discount. (Or ten thousand avalon mining chips ...)