In a market, there are two types of firms. 'Low-Cost' firms can produce a total of 400 units at a marginal cost of €1.00 per unit. 'High-Cost' firms can produce a total of 200 units at a marginal cost of €1.10 per unit. Suppose a new production technique becomes available exclusively to the 'High-Cost' firms, reducing their marginal cost to €0.95 per unit. After this change, what is the total quantity supplied to the market if the market price is exactly €1.00?
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In a market, there are two types of firms. 'Low-Cost' firms can produce a total of 400 units at a marginal cost of €1.00 per unit. 'High-Cost' firms can produce a total of 200 units at a marginal cost of €1.10 per unit. Suppose a new production technique becomes available exclusively to the 'High-Cost' firms, reducing their marginal cost to €0.95 per unit. After this change, what is the total quantity supplied to the market if the market price is exactly €1.00?
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