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    Macroeconomics Study Set 68
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    Exam 4: Market Failures Caused by Externalities Asymmetric Information
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    Refer to the Diagram
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Refer to the Diagram

Question 28

Question 28

Multiple Choice

  Refer to the diagram. Which one of the following might shift the marginal cost curve from MC1 to MC2? A)  major new studies strongly linking cancer to pollution B)  improved technology for reducing pollution C)  a change in consumer tastes from services to manufactured goods D)  an increase in the price of recycled goods Refer to the diagram. Which one of the following might shift the marginal cost curve from MC1 to MC2?


A) major new studies strongly linking cancer to pollution
B) improved technology for reducing pollution
C) a change in consumer tastes from services to manufactured goods
D) an increase in the price of recycled goods

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