A tannery discovers a technology that makes it cheaper to reduce the air pollution it generates in making paper.On a graph of the optimal level of air quality, the use of the new technology would be represented by
A)a leftward shift of the marginal social cost curve
B)a rightward shift of the marginal social cost curve
C)movement to the right along the marginal social cost curve
D)movement to the left along the marginal social cost curve
E)a downward shift of the marginal net benefit curve

Question

Quizplus · Accepted Answer

The use of the new technology would mean that the cost of reducing air pollution decreases, resulting in a rightward shift of the marginal social cost curve. This means that the optimal level of air quality is now achieved at a lower cost, which is beneficial for both the industry and society as a whole.

A Tannery Discovers a Technology That Makes It Cheaper to Reduce