Question: Using a graph like Figure, show the effect on the determination of the socially optimal amount of pollution-reduction effort of the following: 1. Some technological

Using a graph like Figure, show the effect on the determination of the socially optimal amount of pollution-reduction effort of the following:
1. Some technological change that lowers the marginal cost of achieving every level of pollution reduction.
2. A discovery that there are greater health risks associated with every given level of pollution than were previously thought to be thecase.

Marginal cost of pollution reduction MC Marginal benefit MC MB of pollution reduction MB Reduction in pollution p* 100%

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