Refer to the diagram. Which one of the following might shift the marginal cost curve from MC1 to MC2?
A) major new studies strongly linking cancer to pollution
B) improved technology for reducing pollution
C) a change in consumer tastes from services to manufactured goods
D) an increase in the price of recycled goods

Question

Refer to the diagram. Which one of the following might shift the marginal cost curve from MC1 to MC2?
A) major new studies strongly linking cancer to pollution 
B) improved technology for reducing pollution 
C) a change in consumer tastes from services to manufactured goods 
D) an increase in the price of recycled goods

Quizplus · Accepted Answer

Improved technology for reducing pollution would likely shift the marginal cost curve from MC1 to MC2 as it would decrease the cost of producing the same level of output while reducing pollution, resulting in a lower marginal cost of production. The other options are unlikely to have a direct impact on the marginal cost curve.

Refer to the Diagram