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Tom and Jane are neighbors. Let's help them resolve an externalities problem. Tom, who likes to barbecue, has utility function Ur (CS) Cy 5,

 

Tom and Jane are neighbors. Let's help them resolve an externalities problem. Tom, who likes to barbecue, has utility function Ur (CS) Cy 5, where CT is his consumption (in dollars) and 5 is the smoke level. Jane hates it when smoke drifts into her property. Her utility function is U, (C):5)-C-52/4 where C, is her consumption (in dollars) and 5 is Tom's smoke level. * Suppose that the smoke level right now is 4. If Tom wishes to increase his barbecuing up to the next "smoke level", how much would he have to compensate Jane so that she is no worse off? (Round your answer to 2 decimal places)

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