please answer asap Public Economics Public finance and Public policy
Posted: Sun Jun 05, 2022 4:47 pm
- Please Answer Asap Public Economics Public Finance And Public Policy 1 (31.66 KiB) Viewed 34 times
Public Economics
Public finance and Public policy
Person A smokes, but his room mate B hates smoking. A and B have the following utility functions: UA = 100 + 8c - 0.1c²; UB = 100 - 6c where c is the number of cigarettes smoked by A. Also assume that cigarettes are available at zero cost. Determine: a. the socially optimal level of cigarette smoked by A; b. the number of cigarettes smoked by A when he is completely free to smoke; C. the optimal Pigouvian tax.