Note: you don't need to discount because we will assume that all costs and benefits occur in the same year.

Suppose that 1 million units of a good are sold at $1 a piece, that TOTAL consumer surplus is $250,000 and that TOTAL producer surplus is $0. Now imagine that the government could undertake some project that would lead to a drop in price to $0.75 per unit and 2 million units sold, with $500,000 in consumer surplus and $250,000 in producer surplus. If this project cost $400,000 what are the NET benefits of undertaking this project? On the basis of Benefit Cost Analysis should they undertake this project? Briefly explain.