What is the price of electricity

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Reference no: EM132117009

Question: The first two columns of the table show the demand schedule for electricity from a coal-burning utility; the second and third columns show the utility's cost of producing electricity. The marginal external cost of the pollution created equals the marginal cost.

If the government levies a pollution tax such that the utility produces the efficient quantity, what is the price of electricity, the tax levied, and the government's tax revenue per day?

Reference no: EM132117009

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