Suppose the cost of pollution abatement fell, either because
of an improvement in the technology, or because the cost of some
of the inputs used in reducing pollution fell.
In either case,
the MCA curve would shift to the right to MCA2. The optimal amount of abatement would increase to A*, and the marginal cost of
removing the last unit would fall to MCA*.
Copyright © 1995-2004 OnLineTexts.com, Inc. - All Rights Reserved