-A Chemical Factory and a Fishing Club Share a Lake

Multiple Choice

-A chemical factory and a fishing club share a lake. The marginal social costs, private marginal costs, and marginal benefits from producing chemicals are in the figure above. The chemicals dumped into the lake have always harmed the fish, but now they begin to damage the fishing boats as well. As a result, the

A) marginal social cost curve shifts leftward.
B) marginal social cost curve shifts rightward.
C) marginal benefit curve shifts leftward.
D) marginal benefit curve shifts rightward.