A tannery discovers a technology that makes it cheaper to reduce the air pollution it generates.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 social benefit curve.

Question

Quizplus · Accepted Answer

A rightward shift of the marginal social cost curve represents a decrease in the cost of reducing pollution, which is consistent with the discovery of a cheaper pollution reduction technology. This shift indicates that at any given level of air quality, the cost to society of achieving that level is lower, making it more feasible to achieve higher levels of air quality at lower costs.

A Tannery Discovers a Technology That Makes It Cheaper to Reduce