-Refer to the diagram above,which shows the true marginal cost and marginal benefit of air quality.A leftward shift of the marginal benefit curve of air quality would
A) reduce the optimal level of pollution.
B) raise the optimal level of pollution.
C) not affect the optimal level of pollution.
D) reduce the cost of manufacturing products.
E) increase the cost of manufacturing products.

Question

-Refer to the diagram above,which shows the true marginal cost and marginal benefit of air quality.A leftward shift of the marginal benefit curve of air quality would
A) reduce the optimal level of pollution. 
B) raise the optimal level of pollution. 
C) not affect the optimal level of pollution. 
D) reduce the cost of manufacturing products. 
E) increase the cost of manufacturing products.

Quizplus · Accepted Answer

A leftward shift of the marginal benefit curve indicates that the benefits of air quality are perceived to be lower at each level of air quality. This would result in a higher optimal level of pollution, as the point where marginal cost equals marginal benefit would occur at a higher pollution level.

-Refer to the Diagram Above,which Shows the True Marginal Cost