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An agricultural cooperative sells a product in which it has no market power, i.e. it takes the market price as given. Its marginal cost curve
An agricultural cooperative sells a product in which it has no market power, i.e. it takes the market price as given. Its marginal cost curve is given by MC(Q) = 1 + 2 Q.
What is the change in producer surplus for the cooperative due to a price decrease from $19 to $17? Clearly indicate whether it increases or decreases, and by how much.
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