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Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each clock is C(c) = 2c
Tammy enjoys fixing up old clocks, which she then sells for p. = 100 each. Her cost of fixing each clock is C(c) = 2c + c2. Her partner Marin fixes old watches, which she sells for Pw = 65. The ticking of Tammy's clocks makes Marin less productive, so her cost per watch is C(w) = 3w+ + we. How much should Tammy be taxed per clock in order to achieve the social optimum? O a. $23 O b. $26 O c. $38 O d. $65
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