Question: Assume that demand for cement is approximated by the function P = 1500 100X, where X is aggregate cement demand. The aggregate supply function when

Assume that demand for cement is approximated by the function P = 1500 100X, where X is aggregate cement demand. The aggregate supply function when clinker is used as an input is M C = 50X. A policy is under consideration which would ban clinker. The cheapest clean (low emission) input currently available has a marginal cost of M C = 300 50X

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