1112 Miller Economics Today, 16th Edition
21) Refer to the above figure. The marginal benefit of pollution abatement is curve
A) (1). B) (2). C) (3). D) (4).
22) Refer to the above figure. If the marginal cost curve for pollution abatement shifts to the right,
everything considered, the
A) degree of air quality or cleanliness will also decrease.
B) the degree of air quality or cleanliness will stay unchanged.
C) the degree of air quality will improve.
D) the marginal cost of pollution abatement has nothing to do with air quality.
23) 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.
24) Refer to the above figure. Suppose the marginal benefit and the marginal cost curves of
pollution abatement are normally shaped. Suppose the equilibrium is for a factory in Los
Angeles. What would happen if the same factory were in the middle of Nevada?
A) The marginal cost curve (1) would shift to (2) and there would be no difference in the level
of abatement.
B) The marginal cost curve (2) would shift to the left and there would be less abatement in
Nevada.
C) The marginal benefit curve (4) would shift to the left and there would be less abatement in
Nevada.
D) The marginal benefit curve (2) would shift to the right and there would be more abatement
in Nevada.