-The Figure Above Shows the Marginal Social Cost Curve of Generating

Multiple Choice

-The figure above shows the marginal social cost curve of generating electricity, the marginal private cost curve, and the demand curve. If the government imposes a pollution tax to achieve the efficient level of production, the tax equals ________ per kilowatt hour.

A) 2.5 cents
B) 0 cents
C) 15 cents
D) 7.5 cents
E) 10 cents