
-The figure above shows the market for the chemical hydrogen sulfide, the production of which creates an external cost. The government imposes the pollution tax shown in the figure. How much tax revenue does the government collect?
A) $640 million
B) $320 million
C) $240 million
D) more than $640 million
E) Zero, because the government has taxed the firms out of business.
Correct Answer:
Verified
Q86: Q101: Cost effective technologies to reduce pollution are Q102: Q105: Cap-and-trade refers to Q107: Issuing marketable permits to firms that produce Q108: Which of the following best describes an Q111: The cost of producing an additional unit Q111: Firm A and Firm B emit 300 Q116: Q118: Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
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A)capping emissions and issuing tradable![]()
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