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Use the Table Below to Answer the Following Question

Question 105

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Use the table below to answer the following question.
Table 15.2.3
Use the table below to answer the following question. Table 15.2.3    -Refer to Table 15.2.3.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 is equal to the marginal cost. Suppose the government levies a pollution tax such that the utility generates the efficient quantity of electricity.The pollution tax is ________ cents a kilowatt hour. A) 2 B) 4 C) 6 D) 8 E) 10
-Refer to Table 15.2.3.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 is equal to the marginal cost.
Suppose the government levies a pollution tax such that the utility generates the efficient quantity of electricity.The pollution tax is ________ cents a kilowatt hour.


A) 2
B) 4
C) 6
D) 8
E) 10

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