Now suppose that the government has to intervene in the production of the good (rice) for there is a reason to believe (as community clamors it) that the production is causing pollution in the...

Now suppose that the government has to intervene in the production of the good (rice) for there is a reason to believe (as community clamors it) that the production is causing pollution in the community. With the intervention, the local government decided to impose a tax (Pigouvian tax) on the polluters (a tax per unit of the good produced). Use the figure below to answer the following:
A.    What is the value of the tax?
B.    Calculate Pigouvian tax revenue as a result of this tax levied on producers.

Extracted text: Suppose that the private marginal cost for a product's (rice) consumption is given by the MB curve (or MB = 360 – 4Q) and the private marginal cost associated with its production is given by the MPC curve (or MC = 6Q). The diagram is presented below. P ($) 360* MPC 320+ 280+ 240+ 216 200+ 160+ 120+ 80+ 40+ MB 10 20 30 40 50 60 70 80 90 Q per year


Extracted text: P ($) MРC + tax 360 MPC 320 280- 240 216 200 185 160 120 80 40 MB + 10 30 40 50 60 70 80 90 Q per year 20 +