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

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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