
-Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of pollution abatement are normally shaped. Technological change that made it easier to produce in a "cleaner" fashion would cause
A) curve (4) to shift out, increasing the optimal amount of pollution abatement.
B) curve (3) to shift up, raising the marginal benefits and costs and reducing the amount of pollution abatement.
C) curve (2) to shift out, increasing the optimal amount of pollution abatement.
D) curve (1) to shift out, increasing the optimal amount of pollution abatement.
Correct Answer:
Verified
Q174: The optimal amount of air pollution is
A)
Q175: Which of the following statements is TRUE
Q176: Why is the optimal quantity of pollution
Q177: In economic analysis, the optimal level of
Q178: Technological change that makes it easier to