consider the

Consider the following consumer's problem facing a proportional income tax. Utility function over consumption (C) and leisure (L) U(C,L) = 3 |n(C) + 2 |n(L) Total hours: H = 40 Labour hours: NS = H L Proportional income tax rate = 0.2 Production function: Y = zND Total factor productivity: 2 = 4 The representative consumer maximizes utility, the representative rm maximizes prot, and the government balances budget. What is the tax revenue at equilibrium? 0 A. 14.4 0 B. 12.8 0 C. 9.6 O D. 19.2 0 E. none of the above