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Firm 1, a very efficient firm, is willing to produce 1,000 shirts for $2 each. Firm 2, a relatively less efficient firm, needs to get
Firm 1, a very efficient firm, is willing to produce 1,000 shirts for $2 each. Firm 2, a relatively less efficient firm, needs to get $3 for each of the 1,000 shirts that it can produce. Firm 3, the least cost efficient of the three firms, needs to get $4 instead. If the equilibrium price is $5 and equilibrium quantity is 3,000, what is Firm 1's producer surplus?
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