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In the Following Figure,assume That Improvements in Air Quality Shift

Question 5

Multiple Choice

In the following figure,assume that improvements in air quality shift the marginal cost of production from MC1 to MC2.If the producer surplus is used as an approximation of the benefits from improving environmental quality,the maximum the producers would be willing to pay for the reduction in pollution is ________ when the market price of the good is P1. In the following figure,assume that improvements in air quality shift the marginal cost of production from MC<sub>1</sub> to MC<sub>2</sub>.If the producer surplus is used as an approximation of the benefits from improving environmental quality,the maximum the producers would be willing to pay for the reduction in pollution is ________ when the market price of the good is P<sub>1</sub>.   A) area E B) areas E + D + C C) areas D + C D) area B + D


A) area E
B) areas E + D + C
C) areas D + C
D) area B + D

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