The size of the indirect tax per unit that would eliminate the externality equals the vertical distance between MPB and MSB ($2).
The total tax revenue that the government would collect equals:
tax per unit × quantity bought and sold after tax
= $2 × 600 000 units
= $1 2000 000
The price that consumers pay after the imposition of the tax is $8 because the indirect tax will shift the MPC curve up until the new quantity is 600 000 units. At this quantity, the externality is eliminated and the socially optimum output is produced.
Choices A and D are incorrect because they mix the market equilibrium quantity with the socially optimum output, and overstate the tax revenue.
Choices C and D are incorrect because they mix the price paid by the consumer after the tax is imposed with the price received by the producer.