Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each clock is C(c) = 2c + 2. Her partner Marin fixe old watches, which she sells for pu = 65. The ticking of Tammy's clocks makes Marin less productive, so her cost per watch is C(w)% D3w+ + wc. How much should Tammy be taxed per clock in order to achieve the social optimum? O a. $65 O b. $26 O C. $23

Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each clock is C(c) = 2c + 2. Her partner Marin fixe old watches, which she sells for pu = 65. The ticking of Tammy's clocks makes Marin less productive, so her cost per watch is C(w)% D3w+ + wc. How much should Tammy be taxed per clock in order to achieve the social optimum? O a. $65 O b. $26 O C. $23

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter30: Market Failure: Externalities, Public Goods, And Asymmetric Information

Section30.1: Externalies

Problem 2ST

See similar textbooks

Similar questions

3 ranchers use a grassland to feed their cows. The ranchers must choose how many cows - 0-106² per cow, where G is 3 to raise. The benefit of raising a cow for a rancher is 100 – the total quantity of cows using the grassland. The marginal cost of raising a cow is 10. Hence, the net benefit of raising cows for any rancher is (100-1G²) g – 10g, where 3 g is the quantity of cows raised by the rancher. What is the total quantity of cows using the grassland, implied by the Nash Equilibrium? जोळ जोप √5 12
Ivar participates in a lot of Viking raids and needs to buy swords every month. He is offered a sword subscription. For a monthly fee he can buy as many swords as he wants at a per-sword price of $127. Swords can only be purchased in integer amounts. His Marginal Benefits (MB) from swords in a month is given in the table below. What is the maximum Ivar is willing to pay for this sword subscription. Quantity Marginal Benefit 1 $189 $146 $80 $76 $66 45
Y10
ToasterOvenslnc. is developing technology to make a toaster oven than uses less electricity. If successful, the technology will significantly reduce the amount of energy that is wasted due to product inefficiencies. If the firm sells only in response to the market price, the quantity shown in the third column of Table 13.4 is supplied. If the firm were also to receive the broader social benefits of the new technology, the willingness to supply is shown in the fourth column. Table 13.4 Price Quantity Supplied If Firm Quantity Demanded Quantity Supplied Also Receives Social Benefits 15 800 500 710 16 740 540 740 17 680 580 770 18 620 620 800 19 560 660 830 20 500 700 860 If the firm were to receive a price based only on private benefits, the equilibrium price and quantity would be O $16,740 $17,680 $18,620 $19,660
11-) Andrew, Beth, and Cathy live in Lindhville. Andrew’s demand for bike paths, a public good, is given by Q = 12–2P. Beth’s demand is Q = 18–P, and Cathy’s is Q = 8–P/3. The marginal cost of building a bike path is MC = 21. The town government decides to use the following procedure for deciding how many paths to build. It asks each resident how many paths they want, and it builds the largest number asked for by any resident. To pay for these paths, it then taxes Andrew, Beth, and Cathy the prices a, b, and c per path, respectively, where a + b + c = MC. (The residents know these tax rates before stating how many paths they want.)A-). If the taxes are set so that each resident shares the cost evenly (a = b = c), how many paths will get built?B) Show that the government can achieve the social optimum by setting the correct tax prices a, b, and c. What prices should it set?
Lowering the level of pollution to very close to zero would Multiple Choice raise the stendard of living lower the standard of living. have little effect on the standerd of living.
Show work..
Brad is an old mechanic on the street, and he can make Cars and Trucks. He gets paid by the hour, but he has a set number of hours available for work when he is building Cars and/or Trucks. In this case, Brad has 5 total hours of work. Each hour of working can produce either 3 Cars or 1 Truck. With that said, Brad has attained quite a great age, and as a result, he has a constraint in his CAR production abilities. Specifically, Brad has to sit down and take his arthritis medication and relax for 1 hour (rest period) after he spends/allocates the first 2 hours producing CARS. This break of rest for his medication is included as a part of Brad's 5-hour workday. As a result, if Brad chooses to work more than 2 hours for the production of CARS (because he loves his work so much), he has to allocate/spend 1 of his total 5 working hours to taking a break to sit down and take his medication. Additionally, Brad trades his Cars and Trucks with outside market merchants so he can earn money to…
Q1.why is this the answer?
Compare the firm’s least-cost rule with how buyers allocate their consumption dollars.
Please answer correctly and only typed answer
Need details solutions