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In attempts to tackle the climate crisis, production company A has signed onto an environmental policy that transformed their production process and resulted in reduced
In attempts to tackle the climate crisis, production company A has signed onto an environmental policy that transformed their production process and resulted in reduced emission levels. This reduction in emission levels has resulted in an increased level of production, and as such there has been a shift in marginal production costs; the curve has shifted from MC1 = 200 + 6Q,to MC2 = 200 + 2.5Q. The current market price is $500 for each unit output. Using this information, calculate the producer surplus for this production company.
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