
-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
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