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3- Suppose the external marginal cost of electricity generation is $3 per megawatt hour; P* is $32, Q* is 200, and QMKTis 225. If the
3- Suppose the external marginal cost of electricity generation is $3 per megawatt hour; P* is $32, Q* is 200, and QMKTis 225. If the government levies a Pigouvian tax of $3, then:
a- the government will collect total tax revenue of $6,400.
b- the government will collect total tax revenue of $3.
c- the government will collect total tax revenue of $675.
d- the government will collect total tax revenue of $600.
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