16 Suppose that the government levies a pollution tax, such that the utility produces the efficient quantity. What is the price of electricity? What is the tax levied, and the government’s tax revenue per day?

The first two columns of the table show the demand schedule for electricity from a European coal-burning utility; the second and third columns show the utility’s cost of producing electricity.
The marginal external cost of the pollution created is equal to the marginal cost.

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Price (cents per kilowatt) Quantity (kilowatts per day) Marginal cost (cents per kilowatt) 10 4 500 8 400 12 300 86 16 200 4 20 100 2