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a 2. Carl likes to maintain his garden with a loud hedge trimmer. His neighbors don't like the noise and suffer cost EMC Q2 = 3+ Q + per hour of gardening each week. Suppose Carl's marginal benefit from gardening is MB = 30 Q, and his marginal cost is MC = $12/hour (= net earnings from doing the same work for someone else). 10 25 = - = 25 a) Does it make sense that external marginal cost has this functional form (EMC = 3+ a + 10 e)? What is the socially efficient number of hours for Carl to spend on gardening every Q? week? b) How many hours does Carl actually spend gardening? Show the external cost and the deadweight loss in the graph. c) If the city could charge a fee t for every hour of gardening (this would act like an excise tax), what fee should they charge in order to get Carl to the socially efficient level of gardening? - Now suppose Carl's neighbors also extract some benefits from his care of his garden they enjoy having a well-kept neighborhood. The benefit they get is $10 per hour of Carl's gardening. (The costs created by the noise still apply) d) What is the socially efficient level of gardening, and approximately what fee should the city charge per hour of noisy gardening in order to reach the efficient level? a 2. Carl likes to maintain his garden with a loud hedge trimmer. His neighbors don't like the noise and suffer cost EMC Q2 = 3+ Q + per hour of gardening each week. Suppose Carl's marginal benefit from gardening is MB = 30 Q, and his marginal cost is MC = $12/hour (= net earnings from doing the same work for someone else). 10 25 = - = 25 a) Does it make sense that external marginal cost has this functional form (EMC = 3+ a + 10 e)? What is the socially efficient number of hours for Carl to spend on gardening every Q? week? b) How many hours does Carl actually spend gardening? Show the external cost and the deadweight loss in the graph. c) If the city could charge a fee t for every hour of gardening (this would act like an excise tax), what fee should they charge in order to get Carl to the socially efficient level of gardening? - Now suppose Carl's neighbors also extract some benefits from his care of his garden they enjoy having a well-kept neighborhood. The benefit they get is $10 per hour of Carl's gardening. (The costs created by the noise still apply) d) What is the socially efficient level of gardening, and approximately what fee should the city charge per hour of noisy gardening in order to reach the efficient level

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